Life of Guangzhou - Macao's GDP Rises 21.1 Pct in Q2

Macao's GDP for the second quarter of 2008 registered a year-on-year growth of 21.1 percent, according to the figures released on Friday by the Special Administration Region's Statistics and Census Service (DSEC).

In terms of major GDP components, private consumption expenditure and government final consumption expenditure in the second quarter increased by 4.5 percent and 4.3 percent year-on- year respectively, the DSEC said.

The figures also showed that local gaming sector still registered favourable growth, with gaming revenue (excluding gratuities) surged notably by 47.6 percent year-on-year in nominal terms, and total visitor spending (excluding gaming expenses) also rose by 11.7 percent.

Despite a year-on-year increase, Real GDP growth for the second quarter decelerated substantially from the previous quarter, which was mainly attributable to "a significant slowdown in exports of gaming services, as well as further decrease in gross fixed capital formation and merchandise exports", the DSEC said.

As a gauge of investment, gross fixed capital formation has declined for three consecutive quarters, down substantially by 20.7 percent in the second quarter, as against the 16.8 percent drop in the previous quarter, according to the DSEC.

In the private sector, total investment dropped by 18.4 percent, on account of a 16.3 percent decrease in construction investment and a 25.2 percent drop in equipment investment. Total government investment also fell by 69 percent, in which construction investment plunged by 79.8 percent, while equipment investment rose by 53.1 percent.

Integrating data on both sectors, overall investment in construction decreased by 19.6 percent in the second quarter of this year, slowing slightly from the 19.3-percent drop in the previous quarter and overall investment in equipment plummeted by 24 percent, decreasing further from the 9.4-percent drop in the previous quarter.

In terms of visible trade, merchandise exports continued to fall in the second quarter, with the total value of exports declining by 13.5 percent year-on-year in nominal terms and 15.8 percent in real terms.

Meanwhile, total value of merchandise imports increased by 2.9 percent year-on-year in nominal terms, but fell by 7.5 percent in real terms due to rising prices of imports, marking the first quarterly decrease since the third quarter of 2005.

As regards the exports of services, overall exports of services recorded a year-on-year increase of 37.9 percent during the period, while imports of services grew by 35.8 percent.

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