International Trade in Macau SAR

News Related to International Trade in Macau SAR

Business outline for Macau SAR

Economic Overview

After recording an annual economic growth of 16% on average during the years 2002-2008, The Macau territory entered recession. The  global economic crisis caused a collapse of its exports and especially of its tourism sector linked to gambling. The dynamic performance of the Chinese economy has neverthless allowed the country to recovery quickly already at the end of 2009. After a fall of 1.3% in 2009 (compared to 26% growth in 2007), the growth reached 31.4%, 49.1% adn 27.1% in the 1st, 2nd and 3rd quarter of 2010 respectively (figures reviewed and fixed at 17.2%, 31.5% and 27.1%). 

The fast development and the liberalization of the gambling industry had strongly boosted the economy and had promoted a steady growth in tourism. The crisis has shown the country's economic dependency on these sectors and it has caused the government to establish a policy of economic activity diversification. 

Macau is a flourishing territory where the unemployment rate remains among the lowest in the area (3% in 2008), where life expectancy at birth for both sexes is one of the highest in Asia (79 years) and where the GDP per capita is also one of the highest in Asia.

FDI in Figures

Macau is a free port which has benefited of substantial inflows of FDI during the last years. However, the slowdown of the global economy and the recession in the United Statescaused a fall in FDI flows in 2009, however they should remain substantial in the following years. 

The liberalized economy of Macau, its free port status, its political stability and its strategic geographical position in the heart of a dynamic area, present a large number of attractive features to foreign investors. 

Foreign investments are mainly concentrated in the gambling and banking sectors, but the tourism sectors is also being developed (hotel industry). The main investing countries are Mainland China, Hong Kong and the USA.

Foreign Trade Overview

Macau is open to trade with its free ports and low taxation system. Foreign trade represented 140% of the GDP in 2008. The country has implemented a free trade agreement with Mainland China which aims at liberalizing the trade of goods and services and obtaining preferential access to the Chinese market.  

The country has an easy access with few border restrictions and non-tariff barriers. There is a limited government control on exports and import licenses. The partial liberalization of the service sector has helped the economic diversification process which, in return, favors trade development. Low tax rates and customs clearance on electronic products have allowed to speed up procedures, and in this sense it constitutes a great advantage. However, the lack of transparency on many sectors creates an important barrier to the development of trade.

The trade balance of Macau is structurally negative and this balance has further deteriorated since 2008, due to the decrease in exports caused by the economic crisis. This trend should continue during the next following years. 

The main trade partners of the Macau Special Administrative Region are China, the European Union and the United States.