Due to the COVID-19 pandemic, Macau's gross domestic product (GDP) dropped 48.7 percent year-on-year in real terms in the first quarter of the year, the Statistics and Census Bureau (DSEC) announced today.
A DSEC statement noted that the novel coronavirus pandemic "has significantly dampened global economic activity", adding that Macau's economy, which mainly consists of exports of services, has been "severely hit" by COVID-19, "with a substantial decline in total demand", despite the fact that Macau has been spared a community outbreak of the highly contagious disease. All of Macau's 45 COVID-19 patients have been discharged, and all of them were imported cases, or cases connected to imported cases, according to the Macau Health Bureau (SSM).
In terms of external demand, exports of services dropped 60.0 percent year-on-year, with exports of gaming services and other tourism services falling by 61.5 percent and 63.9 percent respectively; moreover, exports of goods recorded a decrease of 23.5 percent.
Domestic demand slid further by 17.5 percent year-on-year, dragged down by the reduction in investment in fixed assets and private consumption expenditure. On the other hand, government final consumption expenditure rose 5.0 percent. Imports of goods and services went down 30.8 percent and 30.3 percent respectively.
The implicit deflator of GDP, which measures the overall changes in prices, increased 2.0 percent year-on-year in the first quarter.
Private consumption decreased 15.2 percent year-on-year amid the epidemic, as residents went out less and made much fewer trips abroad while economic outlook remained uncertain, bureau said.
Household final consumption expenditure domestically and externally fell 11.9 percent and 44.3 percent respectively.
In response to the epidemic, the Macau government scaled up the procurement of protective gear and medical supplies, rented hotels to be used as quarantine facilities and introduced economic relief measures, which drove up government final consumption expenditure by 5.0 percent, an acceleration from the 1.9 percent growth in the previous quarter. Net purchases of goods and services rose 10.3 percent while compensation of employees grew 1.7 percent.
Investment in fixed assets declined further by 37.2 percent year-on-year, with construction investment and equipment investment dropping 37.0 percent and 37.8 percent respectively. Meanwhile, public construction investment rose 47.8 percent year-on-year on account of increased investment in infrastructure by the government. However, equipment investment fell 30.4 percent. Concerning private investment, private construction investment and equipment investment slid by 45.3 percent and 38.1 percent respectively, owing to the successive completion of large-scale construction projects and reduced number of new construction projects, while the slowdown in progress of construction projects and a decrease in the number of real estate transactions amid the epidemic also contributed to the decline, the statement said.
Total demand decreased and external merchandise trade showed weak performance. Imports of goods dropped 30.8 percent year-on-year due to reduction in private consumption, investment and visitor spending. External demand slowed down, with exports of goods falling by 23.5 percent.
Affected by the travel restriction measures imposed by many countries and regions, the number of visitor arrivals to Macau has declined since the Chinese New Year, with the number in the first quarter plummeting 68.9 percent year-on-year, which pushed down exports of gaming services and other tourism services by 61.5 percent and 63.9 percent respectively. Imports of services dropped 30.3 percent year-on-year owing to a decrease in outbound trips made by residents and a slowdown in other economic activity, the statement concluded.
