Results of the 1st Quarter 2006 Estimates of the Expenditure-based Gross Domestic Product (GDP)

Statistics and Census Service (DSEC) releases information on the expenditure-based GDP for the first quarter of 2006 as follows. The growth rates in this release refer to the real growth rates of the reference period over the same period of the previous year, unless otherwise specified. In the first quarter of 2006, the gaming and tourism sector continued to perform well. Gross gaming receipts (excluding gratuities) went up 14.9% in nominal terms and total visitor spending (excluding gaming expenses) rose 19.9% upon increases in the number of arrivals and per-capita spending of visitors. Investment grew rapidly on the back of several large-scale construction projects in progress. Besides, exports of goods rebounded sharply, with a growth of 36.9%. Estimated from the above data, GDP in the first quarter recorded a real growth of 18.8%. In terms of major GDP components, private consumption expenditure in the first quarter of 2006 increased 6.9%, lower than the 8.5% in the fourth quarter of 2005. Household final consumption expenditure in the domestic market rose 8.2% while that abroad advanced 1.0% only. For the household final consumption expenditure abroad, the consumption in Mainland China dropped 2.2% to MOP 484 million. Government final consumption expenditure increased 1.2%, lower than the 7.0% in the fourth quarter of 2005. Compensation of employees was up 5.7% whereas net purchases of goods and services fell 36.6%. Gross fixed capital formation, a gauge of investment, showed a sustained robust expansion and rose substantially by 68.1%, higher than the 53.8% in the fourth quarter of 2005. In the private sector, total investment recorded an increase of 67.9% mainly because investment in construction surged 94.0%; investment in equipment rose 22.9%. Furthermore, total government investment grew 79.8%, in which investment in construction went up strongly by 92.4% but that in equipment decreased 2.3%. Based on the data of the private sector and the government, total investment in construction expanded 94.0% in the first quarter of 2006, higher than the 72.5% in the fourth quarter of 2005; total investment in equipment increased 22.7%, higher than the 13.4% in the fourth quarter of 2005. In terms of visible trade, exports of goods rebounded greatly, posting increases of 36.4% and 36.9% in nominal and real terms respectively, both higher than the corresponding 13.0% and 15.2% in the fourth quarter of 2005. In nominal terms, exports of goods to the United States and the European Union grew 52.3% and 77.6% respectively. Total import value of goods surged owing to an increase in demand, up 32.6% and 28.9% in nominal and real terms respectively, both higher than the corresponding 25.3% and 20.2% in the fourth quarter of 2005. As regards invisible trade (exports of services), exports of gaming services rose 14.6%; visitor spending (excluding gaming expenses) increased 19.9% as a result of more visitor arrivals and a higher per-capita spending of visitors; exports of transportation services expanded 16.1%. Based on integrated data of the exports of services, total exports of invisible trade recorded an increase of 16.0%, up from the 3.5% in the fourth quarter of 2005. Moreover, imports of services grew 13.3%, lower than the 15.5% in the fourth quarter of 2005.