Industrial Structure of Macao 2020

Source：DSEC

Industrial structure reflects the relative importance of various industries in terms of their respective value-added contribution to the economy. Value added refers to the value created in the process of production by an economic activity (e.g. a sector or an industry), i.e. the value of goods and services produced by the economic activity, less the value of goods and services consumed in the production process. Sectors of industries are classified as primary (e.g. fishing, agriculture and animal husbandry), secondary (e.g. mining & quarrying, industrial production and construction) and tertiary (i.e. service sector, such as wholesale & retail trade, restaurants & similar activities, financial activities and gaming).

Normal economic activity around the world has been disrupted since the outbreak of the pandemic in 2020. The economy of Macao, which is heavily reliant on tourism activities, suffered setbacks inevitably, with Gross Value Added of all economic activities declining by 53.7% year-on-year in real terms in 2020.

Changes in Industrial Structure

Gross Value Added of the secondary sector dropped by 9.6% in real terms, and yet its relative importance to total Gross Value Added rose by 4.4 percentage points to 8.7%. The share of the Construction sector increased by 3.3 percentage points to 6.4%, and that of the Electricity, Gas & Water Supply sector grew by 0.8 percentage points to 1.4%. In addition, the share of the Manufacturing sector went up by 0.3 percentage points to 0.9%.

Gross Value Added of the tertiary sector fell by 55.7% in real terms, with its relative importance to total Gross Value Added dropping by 4.4 percentage points to 91.3%. The share of non-gaming services expanded by 25.4 percentage points year-on-year to 70.0%, while that of Gaming & Junket Activities slipped by 29.7 percentage points to 21.3%.

Primary Distribution of Income

Primary distribution of income refers to the distribution of GDP among the three sectors, namely the government (taxes on production and imports), employers (operating surplus) and employees (compensation of employees).

Taxes on Production & Imports, Operating Surplus and Compensation of Employees amounted to MOP29.7 billion, MOP53.9 billion and MOP115.4 billion respectively in 2020, accounting for 14.9%, 27.1% and 58.0% of GDP. The relative importance of Compensation of Employees to GDP increased by 29.1 percentage points year-on-year, whereas the shares of Operating Surplus and Taxes on Production & Imports dipped by 16.2 percentage points and 12.9 percentage points respectively.

Changes in Gross Value Added

Gross Value Added of the secondary sector went down by 9.6% year-on-year in real terms. Gross Value Added of the Construction sector decreased by 6.9%, as receipts from construction works performed declined and its decline was larger than that in intermediate consumption. Gross Value Added of the Manufacturing sector reduced by 34.0% year-on-year in real terms, dragged down by a fall in receipts of the manufacture of food products & beverages industry amid the pandemic.

Gross Value Added of the tertiary sector slid by 55.7% year-on-year in real terms, owing to a decrease of 81.2% in Gross Value Added of Gaming & Junket Activities. All economic activities, except the Banking sector, Public Administration and Education, recorded a drop in Gross Value Added; substantial decline was observed in Hotels & Similar Activities (-80.6%), Restaurants & Similar Activities (-54.2%) and the Transport, Storage & Communications sector (-47.5%).