The Statistics and Census Service (DSEC) released the summary of the expenditure-based GDP for the second quarter of 2008. The rates of change mentioned in the text refer to the year-on-year change in real terms, unless otherwise specified.
In the second quarter of 2008, the gaming sector still registered favourable growth. Gross gaming revenue (excluding gratuities), albeit lower than the first quarter, surged notably by 47.6% year-on-year in nominal terms, and total visitor spending (excluding gaming expenses) also rose by 11.7%; gross fixed capital formation dropped by 20.7% upon shrinking investment in construction and equipment; meanwhile, exports of goods fell by 15.8%. Incorporating all relevant data, GDP expanded by 21.1% and 26.1% respectively in the second quarter and the first half year of 2008 in real terms. Real GDP growth for the second quarter decelerated substantially from the previous quarter was mainly attributable to a significant slowdown in exports of gaming services, as well as further decrease in gross fixed capital formation and merchandise exports.
In terms of major GDP components, private consumption expenditure in the second quarter of 2008 increased by 4.5%, lower than the 8.9% growth in the previous quarter. Household final consumption expenditure in the domestic market rose by 5.5%, while that abroad fell by 5.9%, with the expenditure in Mainland China amounting to MOP 641 million.
Government final consumption expenditure increased by 4.3%, lower than the 17.6% growth in the previous quarter, with compensation of employees going up by 1.1% and net purchases of goods and services rising by 14.1%.
A gauge of investment, gross fixed capital formation has declined for three consecutive quarters, down substantially by 20.7% in the second quarter, as against the 16.8% drop in the previous quarter. In the private sector, total investment dropped by 18.4%, on account of a 16.3% decrease in construction investment and a 25.2% drop in equipment investment. Total government investment fell by 69.0%, in which construction investment plunged by 79.8%, while equipment investment rose by 53.1%. Integrating data on both sectors, overall investment in construction decreased by 19.6% in the second quarter of 2008, slowing slightly from the 19.3% drop in the previous quarter; overall investment in equipment plummeted by 24.0%, decreasing further from the 9.4% drop in the previous quarter.
In terms of visible trade, merchandise exports continued to fall in the second quarter, with the total value of exports declining by 13.5% in nominal terms and 15.8% in real terms, down from the 7.2% and 11.2% decrease in the first quarter. Analyzed by major destination, merchandise exports to the United States, the European Union and Mainland China went down by 8.4%, 47.1% and 45.2% respectively in nominal terms. Total value of merchandise imports increased by 2.9% in nominal terms, lower than the 11.0% growth in the previous quarter, but fell by 7.5% in real terms due to rising prices of imports, marking the first quarterly decrease since the third quarter of 2005. As regards invisible trade (exports of services), exports of gaming services surged remarkably by 47.8% and total visitor spending (excluding gaming expenses) also rose by 11.7%. Integrating the principal data on the exports of services, overall exports of services recorded an increase of 37.9%, lower than the 46.3% growth in the previous quarter; moreover, imports of services grew by 35.8%, lower than the 40.7% rise in the previous quarter.
