Information from the Statistics and Census Service (DSEC) indicated that Gross Domestic Product (GDP) expanded by 25.7% year-on-year in real terms in the first quarter of 2024, on account of the revival of the local economy underpinned by thriving exports of services as well as steady private consumption and gross fixed capital formation. The local economy has recovered to 87.2% of its size in the same quarter of 2019; exports of gaming services and exports of other tourism services grew by 62.7% and 14.8% year-on-year respectively, and domestic demand (including private consumption expenditure, government final consumption expenditure and investment) rose by 3.4%. The implicit deflator of GDP, which measures the overall changes in prices, went up by 2.3% year-on-year to 106.8.
Number of visitor arrivals surged by 79.4% year-on-year to 8.9 million in the first quarter of 2024, back to 85.7% of the figure in the same quarter of 2019. Exports of services, driven by external demand, swelled by 30.3% year-on-year, of which exports of gaming services and other tourism services increased by 62.7% and 14.8% respectively. Meanwhile, imports of services decreased by 3.5%. As regards merchandise trade, exports and imports of goods went down by 13.6% and 1.4% respectively.
In view of the conclusion of the livelihood subsidy scheme amid the economic recovery, private consumption expenditure grew by 10.9% year-on-year, with household final consumption expenditure in the domestic market and abroad rising by 9.1% and 23.1% respectively. On the other hand, government final consumption expenditure dropped by 20.7% as the livelihood subsidy scheme ceased. Net purchases of goods and services declined by 40.5%.
Positive economic sentiment facilitates an increase in investment. Gross fixed capital formation rose by 13.0% year-on-year, marking positive growth for four consecutive quarters. Construction investment and equipment investment expanded by 4.3% and 48.0% respectively. Besides, private equipment investment and construction investment grew by 28.5% and 10.4% year-on-year respectively, owing to a notable rise in private equipment investment and the increased investments in residential building construction and construction projects of gaming enterprises. Meanwhile, government equipment investment recorded an uplift of 239.6% year-on-year, attributable to a significant growth in public equipment investment resulting from the ongoing construction of large infrastructure in this quarter; however, public construction investment dipped by 1.8%.
