The Statistics and Census Service (DSEC) released the summary of the expenditure-based GDP for the third quarter of 2008. The rates of change mentioned in the text refer to the year-on-year change in real terms, unless otherwise specified.
In the third quarter of 2008, gross gaming revenue (excluding gratuities) grew at a slower pace of 27.6% in nominal terms, far lower than the 61.8% and 47.6% increase in the first and the second quarters; total visitor spending (excluding gaming expenses) rose merely by 4.2%; gross fixed capital formation dropped by 25.2% upon shrinking investment in construction and equipment; meanwhile, exports of goods fell substantially by 26.5%. Incorporating all relevant data, GDP expanded by 11.3% in real terms in the third quarter; in addition, real GDP growth for the first and the second quarters was revised upward from 31.6% and 21.1% to 32.3% and 22.2% respectively, and that for 2007 was revised downward from 27.3% to 25.6%.
In terms of major GDP components, private consumption expenditure increased by 5.1% in the third quarter of 2008, moderating from the 5.9% growth in the second quarter. Household final consumption expenditure in the domestic market rose by 5.3%, and that abroad grew by 1.3%, with the expenditure in Mainland China amounting to MOP 665 million.
Government final consumption expenditure increased by 1.6%, lower than the 6.2% rise in the second quarter, with compensation of employees going up by 0.1% and net purchases of goods and services rising by 6.7%.
Gross fixed capital formation, a gauge of investment, has declined for four consecutive quarters, down substantially by 25.2% in the third quarter, as against the 19.1% drop in the second quarter. In the private sector, total investment contracted by 24.1%, on account of the 22.3% decrease in construction investment and the 30.4% drop in equipment investment. Total government investment fell by 46.5%, in which construction investment plunged by 58.1%, while equipment investment rose by 22.0%. Integrating data on both sectors, overall investment in construction shrank by 24.2% in the third quarter of 2008, slowing further from the 17.2% drop in the second quarter; overall investment in equipment plummeted by 28.8%, down from the 25.2% drop in the second quarter.
In terms of visible trade, merchandise exports continued to fall in the third quarter, with the total value of exports declining by 19.6% in nominal terms and 26.5% in real terms, down from the 13.5% and 15.8% decrease in the second quarter. Analysed by major destination, merchandise exports to the United States, the European Union and Mainland China went down by 20.9%, 66.5% and 32.7% respectively in nominal terms. Total value of merchandise imports fell by 15.7% in real terms. As regards invisible trade (exports of services), exports of gaming services went up by 27.5% and total visitor spending (excluding gaming expenses) rose slightly by 4.2% after deducting the 12.5% increase in tourist prices. Integrating the principal data on the exports of services, overall exports of services recorded an increase of 19.9%, lower than the 38.0% growth in the previous quarter; moreover, imports of services grew by 12.9%, down from the 33.0% rise in the second quarter.
