Macau Economy Profile 2008

Economy - overview

Macau's economy has enjoyed strong growth in recent years on the back of its expanding tourism and gaming sectors. Since opening up its locally-controlled casino industry to foreign competition in 2001, the territory has attracted tens of billions of dollars in foreign investment that have helped transform it into the world's largest gaming center. In 2006, Macau's gaming revenue surpassed that of the Las Vegas strip, and gaming-related taxes accounted for 75% of total government revenue. The expanding casino sector, and China's decision beginning in 2002 to relax travel restrictions, have reenergized Macau's tourism industry, which saw total visitors grow to 27 million in 2007, up 62% in three years. Macau's strong economic growth has put pressure its labor market prompting businesses to look abroad to meet their staffing needs. The resulting influx of non-resident workers, who totaled one-fifth of the workforce in 2006, has fueled tensions among some segments of the population. Macau's traditional manufacturing industry has been in a slow decline. In 2006, exports of textiles and garments generated only $1.8 billion compared to $6.9 billion in gross gaming receipts. Macau's textile industry will continue to move to the mainland because of the termination in 2005 of the Multi-Fiber Agreement, which provided a near guarantee of export markets, leaving the territory more dependent on gambling and trade-related services to generate growth. However, the Closer Economic Partnership Agreement (CEPA) between Macau and mainland China that came into effect on 1 January 2004 offers many Macau-made products tariff-free access to the mainland. Macau's currency, the Pataca, is closely tied to the Hong Kong dollar, which is also freely accepted in the territory.

GDP (purchasing power parity)

$12.5 billion (2006)

GDP (official exchange rate)

$14.3 billion (2006)

GDP - real growth rate

16.6% (2006)

GDP - per capita (PPP)

$28,400 (2006)

GDP - composition by sector

agriculture: 0.1%
industry: 3.9%
services: 96% (2006 est.)

Population below poverty line

NA%

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices)

7.2% (2006)

Labor force

275,000 (2006)

Labor force - by occupation

manufacturing 11.1%, construction 11.7%, transport and communications 6.3%, wholesale and retail trade 13.7%, restaurants and hotels 11.3%, gambling 19.8%, public sector 7.7%, financial services 2.6%, other services and agriculture 15.7% (2006 est.)

Unemployment rate

3.1% (2006)

Budget

revenues: $4.6 billion
expenditures: $3.4 billion (2006)

Industries

tourism, gambling, clothing, textiles, electronics, footwear, toys

Industrial production growth rate

3.8% (2006)

Electricity - production

1.67 billion kWh (2006)

Electricity - consumption

2.37 billion kWh (2006)

Electricity - exports

0 kWh (2006)

Electricity - imports

964.4 million kWh (2006)

Oil - production

0 bbl/day (2006 est.)

Oil - consumption

13,920 bbl/day (2006 est.)

Oil - imports

13,870 bbl/day (2006)

Oil - exports

21 bbl/day (2005)

Oil - proved reserves

0 bbl (1 January 2008)

Natural gas - production

0 cu m (2006 est.)

Natural gas - consumption

0 cu m (2006 est.)

Natural gas - exports

0 cu m (2006 est.)

Natural gas - imports

0 cu m (2006)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Agriculture - products

only 2% of land area is cultivated, mainly by vegetable growers; fishing, mostly for crustaceans, is important; some of the catch is exported to Hong Kong

Exports

$2.557 billion f.o.b.; note - includes reexports (2006)

Exports - commodities

clothing, textiles, footwear, toys, electronics, machinery and parts

Exports - partners

US 44.1%, China 14.8%, Hong Kong 11.3%, Germany 7.3%, UK 4.1% (2006)

Imports

$4.559 billion c.i.f. (2006)

Imports - commodities

raw materials and semi-manufactured goods, consumer goods (foodstuffs, beverages, tobacco), capital goods, mineral fuels and oils

Imports - partners

China 45.2%, Hong Kong 10.2%, Japan 8.4%, US 5.5%, Singapore 4.1%, France 4% (2006)

Debt - external

$0 (2006)

Stock of direct foreign investment - at home

$6.5 billion (2006 est.)

Stock of direct foreign investment - abroad

$1.1 billion (2006)

Market value of publicly traded shares

$413.1 million (2004)

Economic aid - recipient

$13.7 million (2004)

Currency (code)

pataca (MOP)

Exchange rates

patacas per US dollar - 8.011 (2007), 8.0015 (2006), 8.011 (2005), 8.022 (2004), 8.021 (2003)

Fiscal year

calendar year