Macau Economy 2008

Economy - overview:
Macau's economy has enjoyed strong growth in recent years on the back of its expanding tourism and gaming sectors. Since opening up its locally-controlled casino industry to foreign competition in 2001, the territory has attracted 10s of billions of dollars in foreign investment that have helped transform it into one of the world's largest gaming centers. In 2006, Macau's gaming revenue surpassed that of the Las Vegas strip, and gaming-related taxes accounted for 75% of total government revenue. The expanding casino sector, and China's decision beginning in 2002 to relax travel restrictions, have reenergized Macau's tourism industry, which saw total visitors grow to 22 million in 2006, up 32% in two years. Macau's strong economic growth has put pressure its labor market prompting businesses to look abroad to meet their staffing needs. The resulting influx of non-resident workers, who totaled one-fifth of the workforce in 2006, has fueled tensions among some segments of the population. Macau's traditional manufacturing industry has been in a slow decline. In 2006, exports of textiles and garments generated only $1.8 billion compared to $6.9 billion in gross gaming receipts. Much of Macau's textile industry may move to the mainland because of the termination in 2005 of the Multi-Fiber Agreement, which provided a near guarantee of export markets, leaving the territory more dependent on gambling and trade-related services to generate growth. However, the Closer Economic Partnership Agreement (CEPA) between Macau and mainland China that came into effect on 1 January 2004 offers many Macau-made products tariff-free access to the mainland. Macau's currency, the Pataca, is closely tied to the Hong Kong dollar, which is also freely accepted in the territory.

GDP (purchasing power parity):
$10 billion (2004)

GDP (official exchange rate):
$11.56 billion (2005)

GDP - real growth rate:
6.7% (2005)

GDP - per capita (PPP):
$24,300 (2005)

GDP - composition by sector:
agriculture: 0.1%
industry: 7.2%
services: 92.7% (2002 est.)

Labor force:
248,000 (2005)

Labor force - by occupation:
manufacturing 13.7%, construction 10.5%, transport and communications 5.9%, wholesale and retail trade 14.6%, restaurants and hotels 10.3%, gambling 17.9%, public sector 7.8%, other services and agriculture 19.3% (2005 est.)

Unemployment rate:
4.1% (2005)

Population below poverty line:
NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices):
4.4% (2005)

Budget:
revenues: $3.16 billion
expenditures: $3.16 billion (FY05/06)

Agriculture - products:
only 2% of land area is cultivated, mainly by vegetable growers; fishing, mostly for crustaceans, is important; some of the catch is exported to Hong Kong

Industries:
tourism, gambling, clothing, textiles, electronics, footwear, toys

Industrial production growth rate:
NA%

Electricity - production:
1.947 billion kWh (2005)

Electricity - consumption:
2.16 billion kWh (2005)

Electricity - exports:
0 kWh (2005)

Electricity - imports:
341 million kWh (2005)

Oil - production:
0 bbl/day (2005 est.)

Oil - consumption:
15,260 bbl/day (2005 est.)

Oil - exports:
21 bbl/day (2005)

Oil - imports:
12,840 bbl/day (2005)

Oil - proved reserves:
0 bbl (1 January 2006 est.)

natural gas - production:
0 cu m (2005 est.)

natural gas - consumption:
0 cu m (2005 est.)

natural gas - exports:
0 cu m (2005 est.)

natural gas - imports:
0 cu m (2005)

natural gas - proved reserves:
0 cu m (1 January 2006 est.)

Exports:
$2.557 billion f.o.b.; note - includes reexports (2006)

Exports - commodities:
clothing, textiles, footwear, toys, electronics, machinery and parts

Exports - partners:
US 44.1%, China 14.8%, Hong Kong 11.3%, Germany 7.3%, UK 4.1% (2006)

Imports:
$4.559 billion c.i.f. (2006)

Imports - partners:
China 45.2%, Hong Kong 10.2%, Japan 8.4%, US 5.5%, Singapore 4.1%, France 4% (2006)

Economic aid - recipient:
$13.7 million (2004)

Debt - external:
$3.1 billion (2004)

Stock of direct foreign investment - at home:
$NA

Stock of direct foreign investment - abroad:
$NA

Market value of publicly traded shares:
$413.1 million (2004)

Currency (code):
pataca (MOP)

Exchange rates:
patacas per US dollar - NA (2007), 8.0015 (2006), 8.011 (2005), 8.022 (2004), 8.021 (2003)