Information from the Statistics and Census Service (DSEC) indicated that Gross Domestic Product (GDP) contracted by 8.9% year-on-year in real terms in the first quarter of 2022, as a result of the weakening total demand. Exports of services decreased by 4.7% year-on-year, of which exports of gaming services dropped by 25.1% while exports of other tourism services increased by 1.9%; meanwhile, exports of goods expanded by 56.8%. Domestic demand shrank by 1.2% year-on-year on account of a decline in private consumption. Imports of goods and services rose by 29.0% and 2.8% respectively. The implicit deflator of GDP, which measures the overall changes in prices, went up by 0.3% year-on-year.
In the face of an uncertain economic outlook and a sluggish job market, residents’ spending on durable and semi-durable goods declined, which led to a year-on-year drop of 2.2% in household final consumption expenditure in the domestic market. Moreover, household final consumption expenditure abroad fell by 10.8% owing to the resurgence of the pandemic in mainland China. The overall private consumption slid by 2.7% year-on-year.
Government final consumption expenditure showed a decrease of 2.0% year-on-year, attributable to a reduction in the expenditure on pandemic prevention by the SAR Government. Net purchases of goods and services dropped by 6.9% while compensation of employees rose by 1.3%.
Gross fixed capital formation increased by 3.4% year-on-year, of which construction investment dropped by 1.9% while equipment investment grew by 30.5%. Public construction investment and equipment investment leapt by 40.6% and 242.4% respectively, mainly due to the increased investments in construction of public housing, the fourth Macao-Taipa bridge and the Islands District Medical Complex. As regards private investment, construction investment fell by 19.4% owing to reduced investment in casinos; yet, equipment investment showed an uplift of 22.4%.
Merchandise trade continued to thrive, with imports and exports of goods rising by 29.0% and 56.8% year-on-year respectively.
Despite a rise (+8.0%) in the number of visitor arrivals in the first quarter, exports of other tourism services grew by a mere 1.9% and exports of gaming services fell by 25.1%, ascribable to a decrease in the number of overnight visitors; as a result, exports of services dropped by 4.7% year-on-year. Meanwhile, imports of services increased by 2.8%.