Gross Value Added of all economic activities of Macao increased by 5.8% year-on-year in real terms in 2018, underpinned by the growth in Gross Value Added of Gaming & Junket Activities (+10.0%) and Hotels & Similar Activities (+11.4%). The ratio of Gross Value Added to Gross Output of all economic activities rose by 1.4 percentage points to 69.0%.

Gross Value Added of the secondary sector declined by 12.3% in real terms, with the relative importance to total Gross Value Added falling to 4.2%. On the other hand, Gross Value Added of the tertiary sector increased by 6.8% in real terms and its relative importance rose to 95.8%, with the share of non-gaming services dropping by 0.6 percentage points year-on-year to 45.3%.

Changes in Industrial Structure

The relative importance of the secondary sector to total Gross Value Added decreased by 0.9 percentage points to 4.2%, with the shares of the Construction sector and Electricity, Gas & Water Supply dropping by 0.7 and 0.1 percentage points to 3.0% and 0.6% respectively; meanwhile, the share of Manufacturing (0.5%) remained steady compared to 2017.

The relative importance of the tertiary sector rose by 0.9 percentage points from 94.9% in 2017 to 95.8% in 2018. The shares of Gaming & Junket Activities (50.5%) and Hotels & Similar Activities (4.6%) grew notably by 1.5 and 0.4 percentage points respectively, whereas the share of Real Estate Activities (9.6%) fell by 0.9 percentage points year-on-year.

Primary distribution of income

Taxes on Production and Imports, Operating Surplus and Compensation of Employees amounted to MOP125.8 billion, MOP191.2 billion and MOP120.7 billion respectively in 2018, accounting for 28.7%, 43.7% and 27.6% of GDP. Compensation of Employees increased by 5.3% year-on-year, a smaller growth compared to that in GDP, and its relative importance to GDP went down by 1.2 percentage points over 2017. The shares of Operating Surplus and Taxes on Production and Imports climbed by 0.3 and 0.9 percentage points respectively.

Changes in Gross Value Added of Economic Activities

Gross Value Added of the secondary sector declined by 12.3% year-on-year in real terms. Gross Value Added of the Construction sector dropped by 14.7% due to the successive completion of several large-scale hotels and entertainment facilities. Gross Value Added of Electricity, Gas & Water Supply fell by 14.2% in view of a fall in sales and consumption of natural gas used for electricity generation resulting from a decrease in local electricity production. On the other hand, Gross Value Added of Manufacturing rose by 5.8% in real terms, underpinned by Manufacture of Food Products & Beverages.

Gross Value Added of the tertiary sector increased by 6.8% year-on-year in real terms. Apart from the decline in Gross Value Added of the Banking sector and Real Estate Activities, all other industries recorded varying degrees of growth. Gross Value Added of Real Estate Activities dropped by 5.3% in real terms owing to a decrease in real estate developers’ margin. Meanwhile, Gross Value Added of Hotels & Similar Activities rose by 11.4% attributable to increased number of guests of hotels and guesthouses.