Information from the Statistics and Census Service (DSEC) indicated that Gross Domestic Product (GDP) for the third quarter shrank by 24.2% year-on-year in real terms, a deceleration of the economic decline compared with the second quarter (-26.4%). In the first three quarters of 2015, the economy decreased by 25.0% in real terms. Economic contraction in the third quarter was attributable to the continuous decline in exports of services, of which exports of gaming services decreased by 37.4% year-on-year and exports of other tourism services dropped by 15.3%. Growth momentum of domestic demand weakened with a marginal increase of 0.7% year-on-year, where private consumption expenditure held stable, government final consumption expenditure expanded by 6.2%, while gross fixed capital formation dropped by 0.4%. External merchandise trade slackened, with imports falling by 0.1% and export growth slowing to 5.4%. The implicit deflator of GDP that measures changes in prices increased by 4.2% year-on-year. Private consumption expenditure remained stable. Private spending turned cautious amid the continuous adjustment of the economy, while stable employment situation and rising income alleviated consumer spending concerns; private consumption expenditure thus maintained at a level similar compared with a year ago. Household final consumption expenditure in the domestic market rose by 0.1% while that abroad dropped by 0.3%. Government final consumption expenditure expanded by 6.2% year-on-year, of which compensation of employees increased by 5.3% and net purchases of goods and services rose by 7.3%. Investment slowed down. Gross fixed capital formation declined by 0.4% year-on-year, mainly due to a 1.6% drop in private investment. Private investment in construction decreased by 0.7% on account of the slowdown in construction of buildings and major tourism and entertainment facilities, as well as a decrease in real estate developers’ margin; meanwhile, investment in equipment diminished by 8.2%. On the other hand, government investment went up by 17.1% year-on-year, of which public construction investment rose by 20.0% while equipment investment shrank by 2.4%. Merchandise trade remained stagnant. Merchandise imports declined by 0.1% year-on-year upon slower investment and continuous decrease in visitor arrivals and spending; meanwhile, growth in merchandise exports narrowed further to 5.4%. Service trade continued to undergo adjustment. Total exports of services declined by 32.4% year-on-year, of which exports of gaming services dropped by 37.4% and exports of other tourism services shrank by 15.3%. Imports of services contracted by 30.8% year-on-year amid sluggish exports of services.
