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Macau Economy


Macau's economy is based largely on tourism. Other chief economic activities in Macau are export-geared textile and garment manufacturing, banking and other financial services. The clothing industry has provided about three quarters of export earnings, and the gaming, tourism and hospitality industry is estimated to contribute more than 50% of Macau's GDP, and 70% of Macau government revenue.

Macau is a founding member of the WTO and has maintained sound economic and trade relations with more than 120 countries and regions, with European Union and Portuguese-speaking countries in particular; Macau is also a member of the IMF. The World Bank classifies Macau as a high income economy and the GDP per capita of the region in 2006 was $28,436. After the Handover in 1999, there has been a rapid rise in the number of mainland visitors due to China's easing of travel restrictions. Together with the liberalisation of Macau's gaming industry in 2001 that induces significant investment inflows, the average growth rate of the economy between 2001 and 2006 was approximately 13.1% annually.

In a WTO report of international tourism for 2006, Macau ranked 21st in the number of tourists and 24th in terms of tourism receipts. From 9.1 million visitors in 2000, arrivals to Macau has grown to 18.7 million visitors in 2005 and 22 million visitors in 2006, with over 50% of the arrivals coming from mainland China and another 30% from Hong Kong.

Starting in 1962, the gambling industry had been operated under a government-issued monopoly licence by Sociedade de Turismo e Diversões de Macau. The monopoly ended in 2002 and several casino owners from Las Vegas attempted to enter the market. With the opening of the Sands Macao, in 2004 and Wynn Macau in 2006, gambling revenues from Macau's casinos were greatly prosperous. In 2007, Venetian Macau, at the time the second (now sixth) largest building in the world by floor space, opened its doors to the public, followed by MGM Grand Macau. Numerous other hotel casinos, including Galaxy Cotai Megaresort, are also to be opened in the near future. Gambling revenue has made Macau the world's top casino market, surpassing Las Vegas. In the early 2010s, Macau also ramped up show and entertainments in additional to gambling business, including the famous show House of Dancing Water, concerts, industry trade shows and international art crossovers.

Macau is an offshore financial centre, a tax haven, and a free port with no foreign exchange control regimes. The Monetary Authority of Macau regulates offshore finance, while the Macau Trade & Investment Promotion Institute provides services for investment in Macau.

As prescribed by the Macau Basic Law, the government follows the principle of keeping expenditure within the limits of revenues in drawing up its budget, and strives to achieve a fiscal balance, avoid deficits and keep the budget commensurate with the growth rate of its gross domestic product. All the financial revenues of the Macau Special Administrative Region shall be managed and controlled by the Region itself and shall not be handed over to the Central People's Government. The Central People's Government shall not levy any taxes in the Macau Special Administrative Region.


Economy - overview : After opening up its locally-controlled casino industry to foreign competition in 2001, the territory attracted tens of billions of dollars in foreign investment, transforming Macau into one of the world's largest gaming centres. Macau's gaming and tourism businesses were fueled by China's decision to relax travel restrictions on Chinese citizens wishing to visit Macau. By 2006, Macau's gaming revenue surpassed that of the Las Vegas strip, and gaming-related taxes accounted for more than 70% of total government revenue. In 2008, Macau introduced measures to cool the rapidly developing sector. Macau's economy slowed dramatically in 2009 as a result of the global economic slowdown, but strong growth resumed in 2010, largely on the back of tourism from mainland China and the gaming sectors. This city of 550,000 hosted nearly 25 million visitors in 2010. Almost 53% came from mainland China. Macau's traditional manufacturing industry slowed greatly since the termination of the Multi-Fibre Agreement in 2005. The Closer Economic Partnership Agreement (CEPA) between Macau and mainland China that came into effect in January 2004 offers Macau-made products tariff-free access to the mainland; nevertheless, China is Macau's second largest goods export market, behind Hong Kong, and followed by the United States. However, exports in 2010 were less than $900 million, while gaming receipts were almost $24 billion, a 58% increase over 2009. Macau continues to face the challenges of managing its growing casino industry, money-laundering, and the need to diversifying the economy away from heavy dependence on gaming revenues. 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) : $18.47 billion (2009 est.)
GDP (official exchange rate) : $22.1 billion (2009 est.)
GDP - real growth rate : 1% (2009 est.)
GDP - per capita (PPP) : $33,000 (2009)
GDP - composition by sector : agriculture: 0.1%
industry: 2.8%
services: 97.1% (2009 est.)
Labour force : 330,900 (2010 est.)
Labour force - by occupation : manufacturing: 4.3%
construction: 8.7%
transport and communications: 5.5%
wholesale and retail trade: 13.3%
restaurants and hotels: 12.7%
gambling: 13.3%
public sector: 6.7%
financial services: 2.4%
other services and agriculture: 33.2% (2010 est.)
Unemployment rate : 2.9% (2010)
Population below poverty line : NA%
Household income or consumption by percentage share : lowest 10%: NA%
highest 10%: NA%
Investment (gross fixed) : 10.6% of GDP (2011 est.)
Budget : revenues: $204.7 million
expenditures: $180.4 million (2004)
Taxes and other revenues : 49.7% of GDP (2011 est.)
Budget surplus (+) or deficit (-) : 30.3% of GDP (2011 est.)
Inflation rate (consumer prices) : 3.9% (2011 est.)
Commercial bank prime lending rate : 5.3% (31 December 2011 est.)
Stock of narrow money : $2.901 billion (31 December 2011 est.)
Stock of broad money : $28.2 billion (31 December 2011 est.)
Stock of domestic credit : $1.372 billion (31 December 2010 est.)
Market value of publicly traded shares : $46.1 billion (31 February 2011 est.)
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 : -23.7% (2010 est.)
Electricity - production : 1.1 billion kWh (2010 est.)
Electricity - consumption : 3.66 billion kWh (2010 est.)
Electricity - exports : 0 kWh (2010 est.)
Electricity - imports : 2.79 billion kWh (2010 est.)
Oil - production : 0 bbl/day (2010 est.)
Oil - consumption : 17,000 bbl/day (2010 est.)
Oil - exports : 0 bbl/day (2010 est.)
Oil - imports : 15,400 bbl/day (2009 est.)
Oil - proved reserves : 0 bbl (1 January 2011 est.)
Natural gas - production : 0 cu m (2010 est.)
Natural gas - consumption : 154.7 million cu m (2010)
Natural gas - exports : 0 cu m (2010 est.)
Natural gas - imports : 154.5 million cu m (2010 est.)
Natural gas - proved reserves : 174,000 cu m (July 2, 1905 est.)
Current account balance : $6.238 billion (2009 est.)
Exports : $870 million (2010 est.)
Exports - commodities : clothing, textiles, footwear, toys, electronics, machinery and parts
Exports - partners : Hong Kong 43.1%, China 15.8%, US 11.2%, Germany 4% (2010 est.)
Imports : $5.5 billion (2010 est.)
Imports - commodities : raw materials and semi-manufactured goods, consumer goods (foodstuffs, beverages, tobacco), capital goods, mineral fuels and oils
Imports - partners : China 31.1%, Hong Kong 10.5%, France 9.2%, Japan 8.6%, US 5.9% (2010 est.)
Reserves of foreign exchange and gold : $23.73 billion (2010) (2010)
Debt - external : $0 (2010)
Stock of direct foreign investment - at home : $12.1 billion (2008 est.)
Stock of direct foreign investment - abroad : $240 million (2009 est.)
Exchange rates : patacas (MOP) per US dollar - 8 (2011 est.); 8 (2010 est.); 7.983 (2008); 8.011 (2007)
Fiscal year : calendar year




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