Macau's gross domestic product (GDP) dropped 67.8 percent year-on-year in real terms in the second quarter, representing an even more drastic decline compared to the previous quarter, the Statistics and Census Bureau (DSEC) said in a statement today.
In the first quarter, GDP fell 48.7 percent in real terms year-on-year.
Due to the government's continued COVID-19 prevention and control measures, Macau’s exports of services showed declined 92.3 percent year-on-year in the second quarter, of which exports of gaming services and other tourism services dropped by 97.1 percent and 93.9 percent respectively.
Exports of goods decreased 26.4 percent. Domestic demand shrank 8.2 percent year-on-year.
Imports of goods and services dropped 29.6 percent and 47.6 percent respectively.
The implicit deflator of GDP, which measures the overall changes in prices, rose 0.6 percent year-on-year in the second quarter.
The statement said that thanks to the efforts of the local government and civil society in fighting the novel coronavirus pandemic, the COVID-19 situation in Macau improved and economic activity gradually recovered in the second quarter.
As the government launched a consumption subsidy smartcard scheme to encourage domestic demand in the second quarter (an injection of 1.62 billion patacas recorded in government final consumption expenditure), household final consumption expenditure in the domestic market fell only 9.8 percent. Meanwhile, household final consumption expenditure abroad decreased 71.2 percent owing to the entry restrictions imposed in different places to prevent the spread of the novel coronavirus. Overall private consumption dropped 16.5 percent year-on-year.
In response to the COVID-19 pandemic, the government raised the procurement of protective gear and medical supplies, rented a number of hotels to be used as quarantine facilities and introduced economic relief measures such as the consumption subsidy smartcard scheme, which drove up government final consumption expenditure by 14.0 percent, an acceleration from the 5.0 percent growth in the previous quarter, the statement underlined.
Net purchases of goods and services rose 34.5 percent, while compensation of employees increased 2.3 percent.
Investment in fixed assets declined at a much slower pace compared to the previous quarter, down by 8.1 percent year-on-year; construction investment and equipment investment dropped 4.6 percent and 23.9 percent respectively.
Public construction investment rose 29.6 percent year-on-year on account of increased investment in infrastructure by the government, whereas equipment investment shrank 56.0 percent, the statement pointed out.
In terms of private investment, as construction works gradually resumed, coupled with an increase in the investment in some large-scale construction projects, private construction investment recorded a year-on-year decrease of 9.7 percent, a smaller decline than in the previous quarter. However, equipment investment fell 19.8 percent.
Total demand decreased and merchandise trade remained flat as compared to the previous quarter, the statement pointed out. Imports of goods dropped 29.6 percent year-on-year due to a reduction in private consumption, investment and visitor spending. External demand slowed down, with exports of goods falling 26.4 percent.
Visitor arrivals continued to decrease amid the authorities' ongoing travel restrictions, with the number of arrivals in the second quarter plummeting by 99.0 percent year-on-year. This pushed down exports of gaming services and other tourism services by 97.1 percent and 93.9 percent respectively. Concurrently, imports of services shrank 47.6 percent year-on-year owing to a decrease in outbound trips made by residents and a slowdown in other economic activity, according to the statement.
