World > Asia > Macau > Economy (Facts)

Macau - Economy (Facts)

Economy - overview: Macau's well-to-do economy has remained one of the most open in the world since its reversion to China in 1999. Apparel exports and tourism are mainstays of the economy. Although the territory was hit hard by the 1997-98 Asian financial crisis and the global downturn in 2001, its economy grew 10.1% in 2002, 14.2% in 2003, and 28.6% in 2004 before slowing to 6.7% in 2005. The economic boom was powered by gambling, tourism, and the construction necessary to support such endeavors. China's decision to ease travel restrictions led to a rapid rise in the number of mainland visitors. The opening of Macau's gaming industry to foreign access in 2001 spurred an increase in public works expenditures. The budget also returned to surplus in 2002 because of the surge in visitors from China and a hike in taxes on gambling profits, which generated about 70% of government revenue. Much of Macau's textile industry may move to the mainland due to 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. 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. The range of products covered by CEPA was expanded on 1 January 2005. GDP - real growth rate: 6.7% GDP (purchasing power parity): $10 billion (2004) GDP (official exchange rate): $11.56 billion (2005) GDP - per capita (PPP): $24,300 (2005) GDP - composition by sector: agriculture: 0.1% industry: 7.2% services: 92.7% (2002 est.) Population below poverty line: NA Household income or consumption by percentage share: lowest 10%: NA highest 10%: NA Inflation rate (consumer prices): 4.4% (2005) Labor force: 248,000 (2005) Labor force - by occupation: manufacturing 13.7%, construction 10.5%, transport and communications 5.9%, wholesale and retail trade 14.6%, restaurants and hotels 10.3%, gambling 17.9%, public sector 7.8%, other services and agriculture 19.3% (2005 est.) Unemployment rate: 4.1% (2005) Budget: revenues: $3.16 billion expenditures: $3.16 billion; including capital expenditures of NA (FY05/06) Industries: tourism, gambling, clothing, textiles, electronics, footwear, toys Industrial production growth rate: NA Electricity - production: 2.027 billion kWh (2005) Electricity - consumption: 2.159 billion kWh (2005) Electricity - exports: 1 million kWh (2004) Electricity - imports: 340.8 million kWh (2005) Oil - production: 0 bbl/day (2005 est.) Oil - consumption: 12,360 bbl/day (2005 est.) Oil - exports: 21 bbl/day (2005) Oil - imports: 12,840 bbl/day (2005) Oil - proved reserves: 0 bbl Natural gas - production: 0 cu m (2005 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: $3.156 billion f.o.b.; note - includes reexports (2005) 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: $3.912 billion c.i.f. (2005) 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: $3.1 billion (2004) Economic aid - recipient: NA Currency: Macau Pataca (MOP) Currency code: MOP Exchange rates: patacas per US dollar - 8.0015 (2006), 8.011 (2005), 8.022 (2004), 8.021 (2003), 8.033 (2002) Fiscal year: calendar year