Macao 

Macao country policy

Policy established 14 July 2010

• No Restrictions
• The country ceiling is 2000 mln euro
• Early warning signal 150 mln euro
• - of which was used as at 2011-12-31 0 mln euro

Country class: 2

Macao country facts

Atradius DSB Economic Research
Country Report last updated :  13 mei 2009

Country :  MACAU 

Political Situation
Stable,  But Incidental Protests

Head of state
Edmund Ho first chief executive since handover from China and re-elected in 2004 (Next elections in 2009)

Form of government
Limited democracy. Chief Executive and Executive / Legislative Council are under auspices of China.

Internal Economic Situation
Economic Downturn 

General situation
Robust economic growth in previous years: +/- 30% in 2007  as a result of gambling sector liberalisation. A steady stream of investments in casino resorts and tourism infrastructure caused an economic boom. In 2008 economic growth started to slow. In the first quarter economic growth was 32.3% yoy and in the third quarter growth slowed to 11.3%. Falling investments and a halt in growth of casino revenues due to stricter visa restrictions for mainland Chinese caused the slowdown. Private consumption and government spending have a minor impact on economic growth. Inflation increased to 8.8% y-o-y. The government budget is in a surplus due to a strong increase in taxes on gambling profits. Over 2/3 of total government revenues are related to direct gaming taxes. Currency board system vis-à-vis HKD (therefore indirectly USD). The banking sector is relatively underdeveloped. The top 4 banks together control >66% of total assets.

External Economic Situation
Good Solvability And Liquidity

Main sources of foreign exchange
Services (gambling, tourism), clothing, small industrial products.

Main foreign markets
US (49%), China (15%), HK (10%), Germany (6%),

Main expenses of foreign exchange
Raw materials, food, capital goods, fuels.

Balance of payments 
Surpluses on balance of services boosted by gambling and tourism. Trade deficits are more then compensated by tourism revenues. Textiles and garment account for 75% of merchandise trade.