Macao's GDP slides 26.4% in the second quarter

Dragged down by poor performance in exports of services, Macao's gross domestic product (GDP) for the second quarter of 2015 contracted by 26.4 percent year-on-year in real terms, down further from the 24.5 percent drop in the first quarter, said the Macao Special Administrative Region (SAR) Statistics and Census Service (DSEC) on Monday.

Macao's economy has recorded the fourth consecutive quarterly decline as the economic adjustment for the region continues.

According to DSEC statement, the economic contraction of Macao was mainly caused by the falling in exports of gaming services, which decreased by 40.5 percent, and exports of other tourism services, which dropped by 21.5 percent from the previous year, pushing total exports of services down by 35.9 percent. Imports of services also declined by 35.5 percent amid stagnant exports of services.

However, domestic demand in Macao remained stable, with investment grew by 3.2 percent, while private consumption expenditure and government final consumption expenditure increased by 2.0 percent and 5.7 percent respectively, mitigating the economic downturn, DSEC data indicated.

Meanwhile, Macao's private consumption expenditure saw a modest growth of 2 percent as the overall employment situation and income remained stable. Household final consumption expenditure in the domestic market and abroad increased by 1.3 percent and 7.2 percent respectively year-on-year, according to DSEC figure.

Macao's merchandise trade in the second quarter registered a 25. 6 percent year-on-year growth, while decrease in visitor arrivals and shrinking spending pulled down the growth in merchandise imports to 1.3 percent.

Affected by multiple unfavorable factors including the sluggish external demand which dragged down exports of tourism and gaming services, Macao's economy shrank by 25.4 percent in the first half of 2015.