Results of the Estimates of the Expenditure-based Gross Domestic Product (GDP) for the Second Quarter of 2005

The Statistics and Census Service (DSEC) releases summarized information on the expenditure-based GDP for the second quarter of 2005 as follows. Growth rates refer to the real growth rates of the second quarter over the same period of the previous year, unless otherwise specified. In the second quarter of 2005, GDP registered real growth of 8.2%. Meanwhile, the real growth rate for the first quarter was revised upwards from 8.5% to 8.6%. In the second quarter, gross gaming receipts went up 17.2% in nominal terms and investment soared on the back of several large-scale construction projects in progress. Total visitor spending (excluding gaming expenses) dropped 4.8% in real terms as a result of a decrease in per-capita spending, despite the increase in the number of visitor arrivals. In addition, exports of goods fell further by 33.6% in real terms. In terms of major GDP components, private consumption expenditure in the second quarter of 2005 increased 8.9%, slightly lower than the 9.0% in the first quarter. Household final consumption expenditure in the domestic market and abroad rose 8.1% and 17.5% respectively. The government final consumption expenditure increased 9.0%, higher than the 5.1% in the first quarter. Compensation of employees went up 3.7% and net purchases of goods and services surged 31.3%. Gross fixed capital formation, a gauge of investment, continued to expand robustly, up 61.1%, higher than the 38.8% in the first quarter. In the private sector, total investment recorded an increase of 66.7% mainly because investment in construction went up sharply by 133.2%; investment in equipment rose 10.0%. Moreover, total government investment rose 25.2%, among which investments in construction and equipment increased 19.2% and 139.7% respectively. Based on the data of the private sector and the government, total investment in construction expanded 105.4% in the second quarter of 2005, higher than the 75.0% in the first quarter; total investment in equipment increased 11.9%, higher than the 1.2% in the first quarter. In terms of visible trade, the total value of exports of goods declined further to 33.6% in both nominal and real terms in the second quarter, from 18.1% in nominal terms and 18.9% in real terms in the first quarter. In nominal terms, exports of goods to the United States and the European Union fell 36.0% and 70.5% respectively. The total value of imports of goods grew 1.5% in nominal terms and fell 1.6% in real terms, both lower than the corresponding 4.7% and 2.4% in the first quarter. As regards invisible trade (exports of services), exports of gaming services rose 16.8%; total visitor spending (excluding gaming expenses) fell 4.8%, as the 12.1% decrease in per-capita spending completely offset the effects of increase in number of visitor arrivals; exports of transportation services surged 26.3%. Based on integrated data of the exports of services, total exports of invisible trade recorded an increase of 10.7%, slightly down from the 10.9% in the first quarter. Moreover, imports of services grew 10.4%, lower than the 17.5% in the first quarter.