Information from the Statistics and Census Service (DSEC) indicated that the growth momentum, affected by the reverse in exports of gaming services, decelerated in the second quarter of 2014; Gross Domestic Product (GDP) expanding by 8.1% year-on-year in real terms, lower than the 12.4% in the first quarter. Economic growth in the second quarter was fuelled by the impetus of investment and exports of other tourism services, of which private investment soared by 56.4%, both merchandise exports and exports of other tourism services rose by 10.4%; however, exports of gaming services shrank notably, down by 0.5% year-on-year. In the first half year of 2014, the economy expanded by 10.2% year-on-year; the implicit deflator of GDP that measures the overall change in prices surged by 9.8% year-on-year in the second quarter of 2014.

Private consumption expenditure posted solid growth. In view of the buoyant labour market and mounting manpower needs, both total employment and working income rose to record high, pushing private consumption expenditure to rise by 7.0% year-on-year. Household final consumption expenditure in the domestic market and abroad increased by 7.3% and 6.6% respectively.

Government final consumption expenditure increased by 4.8% year-on-year, of which compensation of employees rose by 3.4%, and net purchases of goods and services increased by 7.5%.

Investment was the main driver of growth. Gross fixed capital formation, the gauge of investment, expanded by 52.7% year-on-year, higher than the first quarter growth of 30.9%. Private investment soared substantially by 56.4% as construction of the major tourism and gaming facilities was in full swing, of which construction and equipment investment surged by 58.3% and 46.9% respectively. Government investment increased by 9.6%, public construction investment and equipment investment rose by 10.4% and 4.0% respectively.

Merchandise growth sustained. Merchandise exports grew by 10.4% upon moderate increase in external demand; meanwhile, merchandise imports rose by 18.3% at the back of an expanding private investment, rising private consumption expenditure and visitor arrivals.

Trade in services decelerated. With visitor arrivals and spending rising concurrently, exports of other tourism services increased by 10.4%; however, exports of gaming services decreased by 0.5% year-on-year, marking an end to upturn during the past six quarters. Under the lacklustre performance of the gaming sector, growth in total exports of services narrowed significantly to 1.3%, while imports of services declined by 11.1% year-on-year.