The Monetary Authority of Macao (AMCM) releases today the preliminary balance of payments (BOP) statistics of Macao SAR for the reference year 2014. 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 2014, the current account continued to register a large surplus at MOP169.5 billion due to net service exports. Meanwhile, the financial non-reserve assets, the dominant component of the financial account, showed a net increase of MOP97.1 billion mainly driven by recurrent growth in foreign financial assets of residents and the government sector. Exports of goods leaped by 19.7% year-on-year and imports of goods (f.o.b.) increased by 15.5%. With a much larger basis of imports than exports, the merchandise trade deficit enlarged from MOP85.4 billion in 2013 to MOP98.2 billion in 2014. On the other hand, both service exports and service imports decreased in 2014, falling by 0.9% and 10.5%, respectively. As service imports dropped by a larger magnitude, the services account continued to record an increasing surplus, up from MOP333.4 billion in 2013 to MOP339.4 billion in 2014. The primary income account, which reflects cross-border flows of factor income, recorded a net outflow of MOP62.3 billion in 2014, down from the net outflow of MOP65.3 billion in 2013. The reduction in net outflow stemmed mainly from the notable increase in income earned by Macao residents on portfolio investment and other investment abroad. The secondary income account, which comprises mainly inflows and outflows of personal transfers as well as donations received/made by local social service organisations with respect to the rest of the world, recorded a net outflow of MOP9.4 billion, marking an increase of MOP1.8 billion from 2013. 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 reached MOP169.5 billion, down by MOP5.5 billion from MOP175.1 billion in 2013. Net financial non-reserve assets registered a net outflow of MOP97.1 billion in 2014, compared to a net outflow of MOP141.3 billion in 2013. Of which, a net inflow of direct investment amounting to MOP7.5 billion was recorded, lower than the net inflow of MOP19.4 billion in 2013. Portfolio investment saw a notably lower net outflow in 2014, at MOP44.8 billion, from MOP99.4 billion in 2013, as the external securities investment of the provisional portfolio was reduced by MOP3.6 billion in 2014, contrary to a significant increase of MOP48.0 billion in 2013. Meanwhile, the net outflow of other investment rose slightly to MOP62.2 billion in 2014 from MOP61.8 billion in 2013 as liabilities registered a larger reduction than financial assets during the period. On the other hand, financial derivatives recorded a net inflow of MOP2.3 billion in 2014, as against a net inflow of MOP0.6 billion in 2013. Reserve assets in the financial account record the net change in Macao SAR foreign exchange reserves held by the AMCM. Reserve assets, after price, exchange rate and other adjustments, rose by MOP0.6 billion as compared to a decrease of MOP4.6 billion in 2013, implying an overall BOP surplus of MOP0.6 billion in 2014. 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 2015.
