Feature

Overview of Macao Trade in Services and Its Trends

Under the rapid growth of world trade in services, Macao trade in services also experience a positive development. In 2000, Macao trade in services only counted MOP 35.41 billion, accounting 65.1% of GDP. This figure has sharply increased 10 times and reached MOP 392.11 billion in 2019, accounting 88.1% of GDP. Within the remarkable tertiary sector, gaming & junket activities is the major services, followed by the public administration, education, health and other services and real estate activities.

To learn more about Macao trade in services, according to the Report on the Development Index of Trade in Services in the World published by Ministry of Commerce of the People’s Republic of China since 2018, Macao has been ranked 3^rd (in 2018), 4^th (in 2019) and 3^rd (in 2020) in global under the Development Index of Trade in Services in the World, viewing the sub-indices, Macao has been ranked the 1^st in terms of proportion of trade in services, industry competitiveness and the economy level of services industry for 3 consecutive years. Moreover, Macao was tied with Hong Kong China, Singapore and Ecuador for the 1^st in 2019 and 2020 under the sub-index of STRI (The Service Trade Restrictions Index). However, from the perspective of total trade in services, proportion of trade in emerging services, proportion of global trade in services, value-added of the industry and trade environment, Macao was underperformed.

While digitalization becomes the global main stream, there is a wider use of digital technology in services. Macao Information and Communications Technology (ICT) service was encountered a negative growth under the global digitalization in recent years, instead of following the speedy development of the economy and expanded the ICT service export. Nevertheless, Macao local information technology industry has been undergoing a positive development in the latest years. At the same time, for the Macao ICT Enabled Services, particularly export of financial services, technical, trade-related and other business services, their potential of digitalization is growing. It is believed that once the industries development integrate with digital technology, greater opportunity will be created.

Macao trade in services also experience a positive development