Industrial structure of Macao 2014

The Statistics and Census Service (DSEC) had previously used basic prices for calculating and analyzing gross output, gross value added and industrial structure of economic activities, while data compiled at producers’ prices were simultaneously released. The difference between basic prices and producers’ prices is that the former does not include taxes on products. As the gaming sector assumes a leading role in the economy of Macao and gaming tax (a type of tax on product) is enormous, valuation of gross output and gross value added of the industry at producers’ prices (i.e. incorporating gaming tax into output of the gaming sector) can provide a more accurate measure of the contribution of the industry to the economy. The analysis of the industrial structure in 2014 indicated that gross value added of the gaming sector (including junket activities) accounted for 59.1% of the total gross value added at producers’ prices, which is 19.2 percentage points higher than the corresponding share at basic prices (39.8%). Moreover, international guidelines allow the inclusion of product taxes in the calculation of gross value added of an economic activity, and many major economies such as Mainland China, the United States and Japan use producers’ prices in their compilation. Therefore, starting from the reference year 2014, DSEC focuses on providing statistical analysis of data, such as gross value added and industrial structure, at producers’ prices; meanwhile, relevant data at basic prices are also provided as a reference source for the public and to facilitate international comparisons. In 2014, Gross Value Added of all economic activities at producers’ prices decreased by 2.8% year-on-year in real terms. The secondary sector’s share of total Gross Value Added rose by 1.5 percentage points to 5.2%, while the relative importance of the tertiary sector fell by 1.5 percentage points to 94.8%, ending its continuous uptrend since 2006. As the nominal growth in Gross Value Added (+5.5%) outpaced the growth in Gross Output (+4.6%), the ratio of Gross Value Added to Gross Output of all economic activities went up from 56.5% in 2013 to 57.0% in 2014. Meanwhile, with a 7.5% rise in employed population, enterprise expenditure on employee compensation increased by 19.3%, bringing the ratio of Compensation of Employees to Gross Value Added up by 2.5 percentage points year-on-year to 21.9%. Changes in Gross Value Added of Economic Activities Economic activities showed mixed performance. Gross Value Added of the secondary sector increased significantly by 34.7% in real terms, in which Construction had the most outstanding growth. Attributable to the construction of major tourism and entertainment facilities, as well as increased investment in building construction, Gross Value Added of Construction surged by 40.6% in real terms. Meanwhile, Gross Value Added of Electricity, Gas & Water Supply increased by 15.6% in real terms. On the other hand, Gross Value Added of the tertiary sector decreased by 4.2% in real terms, resulting from an 8.4% drop in Gross Value Added of Gaming & Junket Activities owing to a decline in gross gaming receipts. Nevertheless, some service industries remained buoyant, of which Gross Value Added of Transport, Storage & Communications went up by 19.4% in real terms, Education up by 15.0%, Renting & Business Activities up by 12.9% and Hotels & Other Provision of Short-Stay Accommodation up by 12.0%. Changes in Industrial Structure The secondary sector’s share of total Gross Value Added grew by 1.5 percentage points to 5.2%, of which the relative importance of Construction rose by 1.4 percentage points to 4.3%, while that of Electricity, Gas & Water Supply and Manufacturing remained stable compared with 2013, at 0.5% and 0.4% respectively. The contribution of the tertiary sector declined from 96.3% in 2013 to 94.8% in 2014, down by 1.5 percentage points. Relative importance of Gaming & Junket Activities plunged by 4.9 percentage points to 59.1%, while that of Wholesale & Retail (5.3%) stayed virtually the same compared with 2013. Some of the service industries registered increase in their relative importance: Real Estate Activities (7.1%) up by 1.0 percentage point; Banking (4.0%) up by 0.7 percentage points; Renting & Business Activities (3.7%) up by 0.5 percentage points; Hotels & Other Provision of Short-Stay Accommodation (3.5%) up by 0.4 percentage points; Transport, Storage & Communications (2.1%) up by 0.3 percentage points. * please find the attached file