Results of the 2nd Quarter 2007 Estimate of the Expenditure – based Gross Domestic Product

The Statistics and Census Service (DSEC) released the expenditure-based GDP and the related information for the second quarter of 2007. The rates of change mentioned in this press release refer to the year-on-year change in real terms, unless otherwise specified. In the second quarter of 2007, the gaming and tourism sector continued to perform well. Gross gaming receipts (excluding gratuities) grew significantly by 48.9% in nominal terms compared with the same quarter of 2006. Total visitor spending (excluding gaming expenses) rose by 14.2% upon rises in the number of visitor arrivals and their per-capita spending. Investment soared by 44.4% on the back of several large-scale construction projects in progress. However, exports of goods fell by 5.9%. Estimated from all relevant data, GDP for the second quarter and the first half of 2007 recorded real growth of 31.9% and 28.9% respectively, while that for the first quarter was revised upward to 25.8%. In terms of major GDP components, private consumption expenditure in the second quarter of 2007 increased by 8.4%, lower than the 9.0% growth in the previous quarter. Household final consumption expenditure in the domestic market rose by 6.5%, while that abroad went up by 8.2%, with the expenditure in Mainland China amounted to MOP 576 million. Government final consumption expenditure increased by 10.0%, up from the 1.1% increase in the previous quarter, of which compensation of employees and net purchases of goods and services went up by 9.5% and 11.5% respectively. Gross fixed capital formation, a gauge of investment, showed a robust expansion of 44.4%, higher than the 41.5% growth in the previous quarter. In the private sector, total investment recorded an increase of 49.9% that was mainly attributable to a surge of 56.7% in investment in construction; besides, investment in equipment rose by 32.4%. On the other hand, total government investment dropped by 20.0%, in which investments in construction and equipment decreased by 19.5% and 26.4% respectively. Based on the data of the private and public sectors, total investment in construction expanded by 49.1% in the second quarter of 2007, quickening from the 44.6% growth in the previous quarter; total investment in equipment increased by 31.2%, lower than the 33.0% rise in the previous quarter. In terms of visible trade, the decline in total value of goods exports in the second quarter narrowed from 9.6% in the previous quarter to 6.2% in nominal terms, or from 8.5% to 5.9% in real terms. Among this, exports to the United States and the European Union went down by 17.3% and 23.1% respectively in nominal terms, whereas exports to Hong Kong, China and Mainland China rose by 20.0% and 14.6% respectively. Total value of goods imports increased upon greater demand, by 15.3% and 13.0% in nominal and real terms respectively, lower than the 19.2% and 17.6% growth in the previous quarter. As regards invisible trade (exports of services), exports of gaming services soared by 49.0%; total visitor spending (excluding gaming expenses) increased by 14.2% upon rises in the number of visitor arrivals and their per-capita spending. Based on the integrated data of the exports of services, total exports of invisible trade recorded an increase of 37.1%, higher than the 32.9% growth in the previous quarter. Moreover, imports of services grew by 25.5%, up from 22.1% increase in the previous quarter.