Economy - overview:
Macau's well-to-do economy has remained one of the most open in the world since its reversion to China in 1999. Apparel exports and tourism are mainstays of the economy. Although the territory was hit hard by the 1997-98 Asian financial crisis and the global downturn in 2001, its economy grew 10.1% in 2002, 14.2% in 2003, and 28.6% in 2004. During the first three quarters of 2005, Macau registered year-on-year GDP increases of 6.2%. A rapid rise in the number of mainland visitors because of China's easing of travel restrictions, increased public works expenditures, and significant investment inflows associated with the liberalization of Macau's gaming industry drove the four-year recovery. The budget also returned to surplus since 2002 because of the surge in visitors from China and a hike in taxes on gambling profits, which generated about 70% of government revenue. The three companies awarded gambling licenses have pledged to invest $2.2 billion in the territory, which will boost GDP growth. Much of Macau's textile industry may move to the mainland as the Multi-Fiber Agreement is phased out. The territory may have to rely more on gambling and trade-related services to generate growth. Two new casinos were opened by new foreign gambling licensees in 2004; development of new infrastructure and facilities in preparation for Macau's hosting of the 2005 East Asian Games led the construction sector. The Closer Economic Partnership Agreement (CEPA) between Macau and mainland China that came into effect on 1 January 2004 offers many Macau-made products tariff-free access to the mainland, and the range of products covered by CEPA was expanded on 1 January 2005.

GDP (purchasing power parity):
$10 billion (2004 est.)

GDP (official exchange rate):
$10.05 billion (2004 est.)

GDP - real growth rate:
2.8% (3rd Quarter 2005)

GDP - per capita (PPP):
$22,000 (2004)

GDP - composition by sector:
agriculture: 0.1%
industry: 7.2%
services: 92.7% (2002 est.)

Labor force:
251,200 (3rd Quarter, 2005)

Labor force - by occupation:
manufacturing 13.7%, construction 10.5%, transport and communications 5.9%, wholesale and retail trade 14.6%, restaurants and hotels 10.3%, gambling 17.9%, public sector 7.8%, other services and agriculture 19.3% (2005 est.)

Unemployment rate:
4.1% (3rd Quarter 2005)

Population below poverty line:
NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices):
3.8% (2nd quarter, 2005)

Budget:
revenues: $3.16 billion
expenditures: $3.16 billion; including capital expenditures of $NA (FY05/06)

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:
NA%

Electricity - production:
1.893 billion kWh (2004)

Electricity - consumption:
1.899 billion kWh (2004)

Electricity - exports:
0 kWh (2004)

Electricity - imports:
153.3 million kWh (2004)

Oil - production:
0 bbl/day (2004 est.)

Oil - consumption:
12,000 bbl/day (2003 est.)

Oil - exports:
NA bbl/day

Oil - imports:
NA bbl/day

Natural gas - production:
0 cu m (2003 est.)

Natural gas - consumption:
0 cu m (2003 est.)

Exports:
$3.465 billion f.o.b.; note - includes reexports (2004)

Exports - commodities:
clothing, textiles, footwear, toys, electronics, machinery and parts

Exports - partners:
US 48.7%, China 13.9%, Germany 8.3%, Hong Kong 7.6%, UK 4.4% (2004)

Imports:
$3.478 billion c.i.f. (2004)

Imports - commodities:
raw materials and semi-manufactured goods, consumer goods (foodstuffs, beverages, tobacco), capital goods, mineral fuels and oils

Imports - partners:
China 44.4%, Hong Kong 10.6%, Japan 9.6%, Taiwan 4.9%, Singapore 4.1%, US 4.1% (2004)

Debt - external:
$3.1 billion (2004)

Economic aid - recipient:
$NA

Currency (code):
pataca (MOP)

Exchange rates:
patacas per US dollar - 8.011 (2005), 8.022 (2004), 8.021 (2003), 8.033 (2002), 8.034 (2001)