Results of the 1st Quarter of 2007 Estimates of the Expenditure – Based Gross Domestic Product (GDP)

The Statistics and Census Service (DSEC) released the expenditure-based GDP and the related information for the first quarter of 2007 as follows. The growth rates indicated in this release refer to the real year-on-year growth rates, unless otherwise specified. In the first quarter of 2007, the gaming and tourism sector continued to perform well. Gross gaming receipts (excluding gratuities) grew significantly by 43.5% in nominal terms compared with the same quarter of 2006. Total visitor spending (excluding gaming expenses) rose by 16.0% upon rises in the number of visitors and the visitors’ per-capita spending. Investment went up strongly by 38.1% on the back of several large-scale construction projects in progress. However, exports of goods fell by 8.5%. Estimated from all relevant data, the real GDP growth rate in the first quarter was 25.6%. In terms of major GDP components, private consumption expenditure in the first quarter of 2007 increased 12.4% in nominal terms, following a similar increase of 12.5% in the previous quarter, whereas the real growth rate was 8.0%, slower than the 10.6% growth in the previous quarter. Household final consumption expenditure in the domestic market rose 8.5% while that abroad went down 1.7%, with the expenditure in Mainland China amounted to MOP 478 million. Government final consumption expenditure increased 3.5%, up from the 1.7% in the previous quarter. Among this, compensation of employees was up 4.9% while net purchases of goods and services dropped 13.5%. Gross fixed capital formation, a gauge of investment, showed a sustained robust expansion, at 38.1%, higher than the 25.6% in the previous quarter. In the private sector, total investment recorded an increase of 39.7% mainly attributable to a surge in investment in construction by 42.4%, whereas investment in equipment rose 32.5%. On the other hand, total government investment slumped 61.9%, in which investment in construction decreased 77.4% while that in equipment surged by 135.4%. Based on the data of the public and private sectors, total investment in construction expanded 40.0% in the first quarter of 2007, quickening from the 33.0% in the previous quarter; total investment in equipment increased 33.0%, significantly up from the 1.8% in the previous quarter. In terms of visible trade, decline in total export value of goods in the first quarter narrowed from 28.6% in the previous quarter to 9.7% in nominal terms, or from 28.9% to 8.5% in real terms. Among this, exports to the United States and European Union went down in nominal terms by 27.0% and 14.2% respectively. Total import value of goods increased considerably upon greater demand, by 18.9% and 17.3% in nominal and real terms respectively, higher than the corresponding figures of 11.8% and 10.3% in the previous quarter. As regards invisible trade (exports of services), exports of gaming services rose 43.0%; total visitor spending (excluding gaming expenses) increased 16.0% upon rises in the number of visitor arrivals and the visitors’ per-capita spending. Based on the integrated data of the exports of services, total exports of invisible trade recorded an increase of 32.9%, slightly lower than the 34.2% in the previous quarter. Moreover, imports of services grew 17.7%, up from the 11.7% in the previous quarter.