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Macau Macau

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Macau

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EconomicPoliticalStructural

Macau – Quick View
ECR score75.52 (Mar 2011)
ECR rank22 (Mar 2011)
Economic
GDP (2010-Q3)USD 6.69 billion
GNI per capita (2009)USD 33,951.67 million
FDI inflow (2009)USD 2.72 billion
Inflation December (2010)3.92%
Central bank assets (2009)USD 19,726.83 million
Unemployment rate (2010)2.7%
Government deficit (2010-Q1)USD 591.44 million
Tax revenue (2010)USD 1,819.33 million
Political
Government typeLimited Democracy
Recent political crisisNA
Economic freedom score (2011)19th
Freedom of information score (2010)NA
Corruption perception index (2010)46th (-3 places)
Structural
Birth rate8 per ‘000
Population balanceUnder 15 – 12.7%
Population balanceOver 65 – 7.7%
Life expectancy yearsMales – 79 years
Life expectancy yearsFemales – 83 years
Mortality rate3.1 per '000
Literacy rate90%
Internet access49.5%

[Top] Economic Overview

Macau persues an open economic policy. As a free port it has a separate tariff zone, which has no foreign exchange controls. Macau established a vital link between mainland China and global markets. Macau's small-scale economy has adopted a policy of openness and flexibility.

Macau has one of the lowest tax regimes in the Asia Pacific region and has a sound financial base and stability. Macau is well positioned in the Asia pacific region and has relatively low taxes.

(Source: gov.mo)

 

Macau Gross Domestic Product

(Source: dsec.gov.mo)

GDP increased from MOP 40,549.40 million in 2008 Q1 to MOP 48,096.30 million in 2009 Q4. GDP reached MOP 54,608.30 million in 2010 Q3.

GDP growth rate

 

Macau GDP and GDP growth

(Source: dsec.gov)

The GDP growth rate declined by 2.5% in 2009 and by more than 13.9% in 2008. There was a major decrease in the GDP growth rate between 2007 and 2009 indicating there was an economic downturn in Macau.

Gross national income (GNI)

Macau’s GNI per capita in 2009 was MOP 276,028 compared to MOP 262,645 in 2008.

 

Macau Gross National Income per capita

(Source: dsec.gov.mo)

Income tax rate

The highest income tax and corporate tax rates in Macau are levied at 12%.

(Source: heritage.org)

Inflation rate


Macau Inflation rate

 

(Source: dsec.gov.mo)

Macau witnessed high inflation in 2008, with inflation rates ranging between 8-9%. In February 2009, inflation rates dipped to 1.83% from 5.78% in January 2009. Towards the end of 2009, deflation was recorded in the months of September, October and November. Inflation rates close to 4% were recorded in the last four months of 2010, the highest since January 2009.  The average inflation rate for 2010 was 2.81%.

FDI Inflow (MOP million)

FDI Inflow (MOP million)

Items

2009

2008

2007

2006

Stock of inward direct investment

96,806

84,077

73,303

52,087

Flows of inward direct investment

22,118

20,779

18,519

12,867

Income of inward direct investment

21,991

21,668

11,163

19,753

(Source: dsec.gov.mo)

In 2009, the foreign direct investment in Macau was MOP 22.12 billion. Investments in the gaming sector amounted to MOP 15.64 billion.

Banking sector assets (MOP million)

Assets

2009

2008

Foreign exchange reserves

146,578.7

127,160.6

Domestic credit and related items

12,964.6

12,831.6

Others

836.4

1,000.4

Total

160,379.7

140,992.6

(Source: amcm.gov.mo)

In 2009, the foreign exchange reserves increased by MOP 19,418.1 million, recording an increase of 15.27% over the previous year. The assets of domestic credit and related items increased by MOP 133 million, whereas, other assets declined by MOP 164 million in 2009 showing an annual decrease of 16.39%.

 

 

 

[Top] Financial Indicators & Government Financial

Consumer Price Index

Consumer Price Index (CPI) is an economic indicator which reflects the price change of a fixed group of representative goods and services consumed by households.


Consumer price index (CPI)

2010

2009

2008

2007

Composite CPI

104.25

101.40

100.23

92.28

CPI-A

103.77

101.45

100.65

92.27

CPI-B

104.38

101.37

100.12

92.33

(Base year 100 = 04/2008 to 03/2009)

(Source: dsec.gov.mo, dsec.gov.mo)

1. CPI-A reflects the price changes of 49% of the households. Their average monthly expenditure ranges from MOP 3000 to MOP 9999.

2. CPI-B reflects the price change of 31% of the households. Their average monthly expenditure ranges from MOP 10000 to MOP 19999.

Interest rates on saving deposits / time deposits


 

End of period

Interest Rates (%)

3-month time deposits

December 2010

0.0286

Prime lending rate

December 2010

5.25

3-month Maibor

January 2011

0.2228

3-month Monetary Bills

January 2011

0.13

AMCM Base Rate

January 2011

0.5

(Source: Monetary Authority)

Money supply (Currency in Circulation)


Money supply (MOP million)

2007

2008

2009

Narrow Money supply (M1)

22,606.6

24,729.6

30,608

Broad Money supply (M2)

185,540.6

189,790.3

212,152.9

(Source: dsec.gov.mo)

Official exchange rate of Macau Pataca

 

Average exchange rates (per 100 units of foreign currency)

2007

2008

2009

U.S. Dollar

803.6

802.1

798.4

Euro

1,100.5

1,180.9

1,113.1

Chinese Renminbi

105.6

115.5

116.9

(Source: dsec.gov.mo)


(Source: amcm.gov.mo)

The exchange rate in January 2011 was MOP 8.026 per US dollar.

[Top] Labour Force and Employment Overview

Labour Force

The total labour force was 331,000 between October–December 2010. The total number of people employed was 322,000.

Labour force participation rate

The labour force participation rate in the same period was 71.4% compared to 71% in the corresponding period in 2009. The labour force participation rate for men and women was 78.2% and 65.4% respectively.

 

Indicator

October – December 2010

October - December 2009

Labour force participation rate

71.4

71.0

- Male

78.2

77.5

- Female

65.4

65.1

Unemployment rate

2.7

3.1

(Source: dsec.gov.mo)

Unemployment rate

The unemployment rate for the period between October–December 2010 was 2.7%. The unemployment rate decreased in comparison to the corresponding period in 2009.

(Source: dsec.gov.mo)

Employment by industry

Employed population (%)

2009

2008

2007

Manufacturing

5.3

7.6

8.0

Construction

10.3

11.9

12.9

Wholesale and retail trade

13.1

12.3

12.8

Hotels, restaurants and similar activities

13.8

12.8

11.6

Transport, communications and storage

5.2

5.0

5.4

Financial intermediation, real estate and business activities

10.4

9.7

9.3

Public administration

6.4

6.2

7.3

Social & personal services

15.1

13.5

12.6

Gaming

19.8

20.6

19.5

Others

0.6

0.4

0.5

(Source: dsec.gov.mo)

Non-resident workers

Industry

2009

2008

2007

Manufacturing

6,512

10,363

13,186

Construction

7,820

15,783

11,530

Wholesale and retail trade

6,696

6,977

3,672

Hotels, restaurants and similar activities

16,099

18,025

12,703

Recreational, cultural, gaming  & other services

10,016

14,750

25,305

Domestic workers

14,299

13,219

9,830

(Source: dsec.gov.mo)

The majority of  non-resident workers are from mainland China. Macau also has workers from other countries including the Philippines, Hong Kong, Indonesia and Vietnam.

 

 

[Top] Political Stability

Government stability

Macau has Special Administrative Region status, according to the constitution of the People's Republic of China. The chief executive is the head of the government. The executive council assists the chief executive in decisions on policy making. The executive council includes seven to eleven members appointed by the chief executive.

Macau's legislative body, known as the Legislative Assembly, consists of members elected for a term of four years. The Legislative Assembly has the authority to enact, amend and repeal laws. It also has the power to examine and approve government budgets.

(Source: gov.mo)

 

Regulatory environment

Macau Economic Freedom Indices

(Source: heritage.org)

Macau scores 73.1 in the economic freedom indices making it s economy 19th freest in 2011 index. Due to improvements in monetary and investment freedom Macau impoved its overall score by 0.6 points in the past year.

Macau has attracted more foreign investment in the gaming sector since 2002. Foreign investors are allowed to conduct business on the same terms as nationals. Being a free port the nation has benefited from global trade and investment.


Corruption perception

The Corruption Perceptions Index (CPI) is a survey conducted to measure the perceived level of corruption across countries worldwide.

Macau is ranked 46rd on the CPI 2010 with a score of 5, indicating that the corruption levels in public departments in Macau are moderate.

(Source: transparency.org)

Freedom of information

Major newspapers include Macau Daily News, The Macau Post Daily, Macau Daily Times, Hou Kong Daily News etc and the various television and radio stations in Macau aim to make people aware of recent events within the nation and worldwide.

Macau has various press associations such as the Macau Media Workers Association, Macau Journalists Club, Macau Journalists Association, Macau Media Club, Macau Sports Press Association etc, to oversee the smooth functioning of the media.

(Source: gcs.gov.mo)

Judicial system

The courts in Macau exercise their power independently. The structure, powers and functions as well as operation of courts within Macau are prescribed by law. The courts in Macau include:

  • The Court of First Instance
  • The Court of Second Instance
  • The Court of Final Appeal

The Court of Final Appeal is the highest court in Macau. Other courts in Macau include the Lower Court and Administrative Court. The Administrative Court adjudicates in administrative and tax cases.

The judges of all courts are appointed by the chief executive. The president of the courts is chosen from among the judges and is appointed by the chief executive.

(Source: gcs.gov.mo)

 

[Top] Demographic Overview

Total Population

Macau’s total population at the end of the third quarter of 2010 was 549,500 inhabitants. The total male population was 262,200 and the total female population was 287,300.

(Source: dsec.gov.mo)

At the end of 2009, 12.7% of the total population was below 15 years of age. A large proportion of the population, 79.5% was in the 15 to 64 year age group and 7.7% were aged 65 and above.

Ratio (%)

2009

2008

2007

Annual population growth

-1.3

2.0

4.7

Aging ratio

60.3

56.2

52.4

Dependency ratio

25.7

25.1

25.9

(Source: dsec.gov.mo)

Macau has a population density of 18,400 people per sq km. Macau Peninsula has a population density of 50,200 per sq km followed by Taipa with a density of 10,800 per sq and Coloane with a density of 500 per sq km.

 

Macau Population by gender

 

Gender balance

The gender ratio at birth was 108.9% in 2009. The gender ratio declined in comparison to the gender ratio of 110.4% in 2008.  The gender ratio of newborns was 103.7 according to estimates for the third quarter of 2010.

(Source:  dsec.gov.mo, dsec.gov.mo)

 

Mortality rate

 

 

The crude mortality rate was 3.1 (per thousand) in 2009. The crude mortality rate declined marginally from 3.2 (per thousand) in the previous year. The infant mortality rate was 2.1 (per thousand) in 2009. However, it is lower than the mortality rate of 3.2 (per thousand) in 2008. There were about 417 mortality cases in the third quarter of 2010.

(Source: dsec.gov.mo, dsec.gov.mo )

Birth rate

The crude birth rate in 2008 was 8 (per thousand), reflecting a constant rate in recent years.

(Source: World Bank)

Average life expectancy

According to provisional figures, the average life expectancy between 2006 to 2009 was 82.4 years. In 2008, the life expectancy of men was 79 years and 83 years for women.

(Source:  dsec.gov.mo, World Bank)

Racial/ethnic environment

The majority of Macau's population are Chinese. Macau's population also includes Macanese (mixed heritage), Portuguese and people of other origin.

(Source: state.gov)

Migration and urbanization

During the third quarter of 2010, there were 2,845 Chinese immigrants with one-way exit permits moving to Macau. 1,216 of the immigrants were men and 1,629 were women.

(Source:  dsec.gov.mo)

Human development index

Indicators

2007

2006

2005

Human Development Index

0.944

0.940

0.934

Life Expectancy Index

0.950

0.942

0.935

Education Index

0.882

0.879

0.880

GDP Index

1.000

1.000

0.988

(Source: dsec.gov.mo)

[Top] Soft Infrastructure

Education/literacy rate

Macau has an estimated literacy rate of approximately 90%. The number of students enrolled for pre-primary education in 2008-09 is 9,270 compared to 9,149 students in 2007-08.

(Source: dsec.gov.mo)

 

Number of students

2008-09

2007-08

2006-07

Pre-primary, primary, secondary and vocational-technical education

76 214

80 268

87 115

Higher education

22 156

18 743

17 462

Special education

482

480

492

(Source: dsec.gov.mo)

Education resources

Level

2008-09

2007-08

2006-07

Pre-primary education

56

58

60

Primary education

70

74

76

Secondary education

55

58

60

Vocational-technical education

10

6

5

(Source: dsec.gov.mo)

Healthcare resources

In 2009, Macau had more than 800 healthcare facilities including hospitals, primary health care clinics, and Chinese medicine and therapy services.

Healthcare Facility (per 1000 population)

2009

2008

2007

Doctors

2.4

2.3

2.3

Nurses

2.8

2.6

2.5

Hospital beds

2.0

1.9

1.9

(Source: dsec.gov.mo)

The major causes of death include neoplasm, diseases of the circulatory system and diseases of the respiratory system. During 2009, 33.1% of total deaths were due to neoplasm, 26.5% due to diseases of the circulatory system and 13.6% due to respiratory system diseases.

(Source: dsec.gov.mo)

[Top] Hard Infrastructure

Mass public transit:

Road transport is the main mode used for mass public transit in Macau. Buses and cabs are the main form of transport used. Macau does not have a railway network.

The outbound modes of transport used by Macau residents include:

Outbound Macau residents (numbers)

Modes

2009

2008

2007

Sea

1,161,600

1,155,400

1,012,200

Land

23,634,500

23,757,600

23,926,600

Air

200,900

188,400

156,400

(Source: dsec.gov.mo)

Roadways:

The total length of public roads in 2009 was 413.1 kilometres.

(Source: dsec.gov.mo)

Ports

The Port of Macau, under the authority of Macauport S.A., is a small seaport.

(Source: World Port Source)

Airports

The Macau International Airport is located in Taipa and is the only airport in Macau used for commercial operations. It is mainly used by Macau residents to travel between China and Taiwan.

(Source: macau-airport)

Telecommunications networks

Telephone:

Macau has approximately 171,360 fixed telephone lines and 1.04 million mobile users. There are approximately 316 fixed telephone lines per 1000 people with 1,913 mobile telephone users per 1000 people.

(Source: dsec.gov.mo)

Internet services:

In 2009, Macau had 143,353 internet service subscribers with an hourly usage of 340.418 million hours. The number of subscribers in 2009 increased by 19.5% compared to 2007.

 

Telecommunication Networks

2009

2008

2007

Mobile telephone users

1,037,380

932,596

794,323

Internet Subscribers

143,353

128,502

119,913

(Source: dsec.gov.mo, internetworldstats)

Macau has an internet penetration rate of 49.5%

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