The Monetary Authority of Macao (AMCM) releases today the preliminary balance of payments (BOP) statistics of Macao SAR for the reference year 2016. The BOP, which comprises the current account, the capital account and the financial account, is a statistical statement that summarises external transactions of an economy with the rest of the world.
In 2016, the overall BOP surplus of Macao SAR was preliminarily estimated at MOP3.5 billion. Of which, the current account surplus stood at MOP98.4 billion and financial non-reserve assets showed a net increase of MOP108.6 billion.
Exports of goods decreased by 22.5% year-on-year while imports of goods (f.o.b.) fell by 15.3%. With imports having a higher base than exports, the merchandise trade deficit contracted from MOP92.3 billion in 2015 to MOP79.4 billion in 2016. Meanwhile, service exports decreased slightly by 2.5%, mainly attributable to falling exports of travel services, whereas service imports went up by 3.8%. Therefore, the services account surplus dropped slightly from MOP234.7 billion in 2015 to MOP226.8 billion in 2016.
The primary income account, which reflects cross-border flows of factor income, recorded a net outflow of MOP26.9 billion in 2016, down from the net outflow of MOP29.1 billion in 2015. The decrease stemmed mainly from the reduction in income earned by foreign direct investors in Macao. The secondary income account, which comprises current transfers between Macao residents and non-residents, recorded a net outflow of MOP22.1 billion, marking an increase of MOP0.9 billion from 2015.
As the large invisible trade surplus offset the deficit in merchandise trade as well as net outflows of primary and secondary income, the current account surplus totalled MOP98.4 billion, up by MOP6.3 billion from MOP92.1 billion in 2015.
Net financial non-reserve assets registered a net outflow of MOP108.6 billion in 2016, representing an increase of MOP86.4 billion compared to the net outflow in 2015. Of which, a net inflow of direct investment amounting to MOP8.4 billion was recorded, higher than the net inflow of MOP4.9 billion in 2015. Due to the significant deceleration in growth of external securities investment held by Macao residents (including individuals, Macao SAR Fiscal Reserve and financial institutions), portfolio investment saw a notably lower net outflow in 2016 at MOP35.7 billion, down from MOP97.4 billion in 2015. Meanwhile, during the reference year, local banks’ external liabilities registered considerable decreases, which in turn caused other investment to record a net outflow of MOP78.5 billion in 2016, contrary to a net inflow of MOP67.7 billion in 2015. On the other hand, financial derivatives registered a net outflow of MOP2.8 billion in 2016, as against a net inflow of MOP2.7 billion in 2015.
Reserve assets in the financial account record the net change in Macao’s foreign exchange reserves held by the AMCM. Reserve assets, after price, exchange rate and other adjustments, rose by MOP3.5 billion in 2016 as compared to an increase of MOP18.6 billion in 2015, reflecting that the overall BOP continued to stay in surplus.
Macao’s BOP statistics are compiled in accordance with the International Monetary Fund’s Balance of Payments and International Investment Position Manual (Sixth Edition). The current release incorporates preliminary estimates of key statistics, and a detailed report with revised data will be published in December 2017.