The economy of Macau has remained one of the most open in the world since its handover to China in 1999. Apparel exports and gambling-related tourism are mainstays of the economy. Since Macau has little arable land and few natural resources, it depends on mainland China for most of its food, fresh water, and energy imports. Japan and Hong Kong are the main suppliers of raw materials and capital goods. Although Macau was hit hard by the 1997–98 Asian financial crisis and the global downturn in 2001, its economy grew approximately 13.1% annually on average between 2001 and 2006. Macau is a full Member of the World Trade Organization. Public Security has greatly improved after handover to People's Republic of China. With the tax revenue from the profitable gambling industry, the Macau government is able to introduce the social welfare program of 15 years of free education to all Macau citizens. In 2015, Macau's economy saw a sharp decrease (-26.4% year-on-year in Q2 2015) due to the reduced spending by visitors from Mainland China since Anti-corruption campaign under Xi Jinping. 
During the first three quarters of 2007, Macau registered year-on-year GDP increases of 31.4%. A rapid rise in the number of mainland visitors due to China's easing of travel restrictions, increased public works expenditures, and significant investment inflows associated with the liberalisation of Macau's gaming industry drove the five-year recovery. The budget also returned to surplus after 2002 because of the surge in visitors from China and a hike in taxes on gambling profits, which generated about 70% of government revenue. The Hong Kong dollar is itself a reserve currency for the Macanese pataca, which is pegged at the official rate of around 1 Hong Kong dollar to 1.03 Macanese pataca.
|Economy of Macau|
|Currency||pataca (MOP) ; Hong Kong Dollar (HKD)|
|GDP||US$51.8 billion (413.5 billion patacas, 2013)|
|GDP rank||82nd (nominal) /|
|11.9% (2013), -26.4% (Q2 2015 year-on-year)|
GDP per capita
|US$88,700 (2013 est.)|
GDP by sector
|services: 94.1%, industry: 5.9% (2014 est.)|
|6% (2014 est.)|
Population below poverty line
|367,800 (2013 est.)|
Labour force by occupation
|wholesale and retail trade 13.3%, gambling 13.3%, restaurants and hotels 12.7%, construction 8.7%, public sector 6.7%, transport and communications 5.5%, manufacturing 4.3%, financial services 2.4%, other services and agriculture 33.2% (2010 est.)|
|Unemployment||1.9% (2013 est.)|
|tourism, gambling, clothing, textiles, electronics, footwear, toys|
|Exports||$1.137 billion (2013 est.)|
|clothing, textiles, footwear, toys, electronics, machinery and parts|
Main export partners
| Hong Kong 53.4% |
Mainland China 17.6%
United States 4% (2014 est.)
|Imports||$10.13 billion (2013 est.)|
|raw materials and semi-manufactured goods, consumer goods (foodstuffs, beverages, tobacco), capital goods, mineral fuels and oils|
Main import partners
| Mainland China 53.8% |
Hong Kong 21.4%
United States 8.3%
Germany 4.1% (2013 est.)
|Revenues||$16.95 billion (2012 est.)|
|Expenses||$6.934 billion (2012 est.)|
Macau was a barren fishing village with a population of about 400 before the Portuguese arrived in the 16th century, during the Age of Discovery. In 1535, the Portuguese traders obtained by bribing the right to anchor ships in Macau harbours and engage in trading activities. Portuguese and Chinese merchants flocked to Macau, and it quickly became an important regional trading center in Portugal's lucrative trade along three major routes: Macau-Malacca-Goa-Lisbon, Guangzhou-Macau-Nagasaki and Macau-Manila-Mexico. However, with the decline of Portugal as a world power in the 17th and 18th centuries, the trading routes were challenged by other powers such as the Dutch and the British. After China ceded Hong Kong to the British in 1842, Macau's position as a major regional trading center declined further still because larger ships were drawn to the deep water port of Victoria Harbour. In an attempt to reverse the decline, from 1848 to the early 1870s Macau engaged in the infamous trade of coolies (slave labourers) as a transit port, shipping locals from southern China to Cuba, Peru, and other South American ports to work on plantations or in mines.
Fishing re-emerged as a dominant economic activity in Macau as it lost its position as a regional trading center. In the early 1920s, over 70% of Macau's 84,000 residents were engaged in fishing. Meanwhile, some other businesses started to develop, such as matches, firecrackers, incense and fishing-boat building. But the most notable was the gambling business. Gambling was first legalised in the 19th century in an attempt to generate revenues for the government. The first casino monopoly concession was granted to the Tai Xing Company in 1937. The company was, however, too conservative to fully exploit the economic potential of gambling. The industry saw a major breakthrough in 1962 when the government granted the Sociedade de Turismo e Diversoes de Macau (STDM), a syndicate jointly formed by Hong Kong and Macau businessmen, the monopoly rights to all forms of gambling. The STDM introduced western-style games and modernised the marine transport between Macau and Hong Kong, bringing millions of gamblers from Hong Kong every year.
In the 1970s Macau also saw a rapid development in its manufacturing sector. With Macau's low-cost operating environment and its surplus quotas under the Multi Fiber Arrangement (MFA), many Hong Kong industrialists established textile and garment manufacturing bases in Macau. At its golden age in the 1980s, the manufacturing sector accounted for about 40% of Macau's GDP; textiles and garments accounted for about 90% of Macau's total visible exports. However, the manufacturing sector has experienced a gradual decline since the early 1990s due to phasing out of the MFA quota system and the rising labour costs relative to mainland China and Southeast Asian countries.
|Employed population by occupation 2007|
|Occupation||No. in thousands|
|Service & sale workers||63.2|
|Workers in agriculture/fishery||0.8|
|Craft & similar workers||33.7|
The work force in Macau is mainly composed of manufacturing; construction; wholesale and retail; hotels and restaurants; financial services, real estate, and other business activities; public administration and other personal and social services, including gaming; transport, storage and communications. Due to the double-digit economic growth in recent years, the unemployment rate dropped from the record high 6.8% in 2000 to 3.1% in Qtr 3, 2007.
With the opening of several casino resorts and other major constructions underway, it is reported that many sectors, especially the construction sector, experience a shortage of labour. The government responds by importing labour from other neighbouring regions, including mainland China, Hong Kong, the Philippines and India. Currently the number of imported labours stands at a record high of 75,391 (Q2 2007), representing more than a quarter of the labour force in Macau. Some local workers complain about the lack of jobs due to the influx of cheap imported labour. Some also claim that the problem of illegal labour is severe. Another concern is the widening of income inequality in the region: Macau's Gini coefficient, a popular measure of income inequality where a low value indicates a more equal income distribution, rises from 0.43 in 1998 to 0.48 in 2006. It is higher than those of other neighbouring regions, such as mainland China (0.447), South Korea (0.316) and Singapore (0.425).
Macau adopts the so-called currency board system under which the legal tender, pataca (MOP), is 100 percent backed by foreign exchange reserves, the Hong Kong dollar (HKD). Moreover, the currency board, Monetary Authority of Macao (AMCM), has a statutory obligation to issue and redeem pataca on demand against Hong Kong dollar at a fixed exchange rate and without limit. The pataca is pegged to the Hong Kong dollar at a rate of 1.03 MOP per HKD, which is maintained by the AMCM.
Each pataca divides into 100 avos. Coins are issued in 10, 20, and 50 avos and 1, 2, 5, and 10 patacas (2 and 10 patacas coins are rarely used in the territory); notes are in 5, 10, 20, 50, 100, 500, and 1000 pataca denominations. Hong Kong dollar is freely used and accounts for more than half of the total deposits in Macau's banks. In addition, Chinese yuan is also widely accepted. Two banks issue currency: the Banco Nacional Ultramarino and the Bank of China (starting from October 1995). The historical exchange rates between the pataca and the US dollar (USD) are given below.
|MOP per USD||Period|
In 2011, Macau's free-market economy produced total exports of US$1.119 billion (MOP 8.94 billion) and consisted mainly of clothing, textiles, footwear, toys, electronics, machinery and parts. Total imports for the same period reached US$8.926 billion (MOP 71.32 billion), and consisted mostly of raw materials and semi-manufactured goods, consumer goods (foodstuffs, beverages, tobacco), capital goods, mineral fuels and oils. Macau's primary export partner in 2011 was Hong Kong (44.6%). Other exports go to Mainland China (15.9%) and United States (7.9%). Macau import partners are Mainland China (30.4%), Hong Kong (12%), France (10.4%), Switzerland (7.5%), Italy (7.5%), Japan (6.2%), and United States (6.1%).
In the second half of the 20th century, Macau's economy was diversified with the development of light industry, the influx of migrants from mainland China to serve as a labour force, and increased tourism. Portugal's efforts to develop economic and cultural links between Macau and Brazil and Portuguese holdings in Africa, however, were not successful. Economic ties to the European Union and Taiwan are considered important aspects of Macau's economic role as part of the People's Republic of China. Direct access to the neighbouring Zhuhai Special Economic Zone facilitates trade with mainland China. As a special administrative region, Macau functions as a free port and as a separate customs territory.
|Visitor arrivals by place of residence in 2006|
|Place of residence||No. of visitor arrivals |
Tourism is the backbone of Macau's economy, and much of it geared towards gambling, which was legalised in the 19th century and has since been the linchpin of the economy and an important source of revenue for the government. From 1962, the gambling industry operated under a government-issued monopoly licence by Stanley Ho's Sociedade de Turismo e Diversões de Macau (STDM), which replaced the Tai Heng Entertainment Corporation that had held a gaming monopoly for the previous 24 years. In the 1990s Macau had nine casinos and gambling reportedly represented 20 to 25% of Macau's GDP. The monopoly ended in 2001 when the gaming industry was liberalised and several casino operators from Las Vegas entered the market. These new operators include Las Vegas Sands, which opened Sands Macao , the largest casino in the world as measured by total number of table games, in 2004 and Venetian Macau  in 2007; Wynn Resorts, which opened Wynn Macau  in 2006; and MGM Mirage, which opened MGM Grand Macau in 2007.
In addition, other casino owners, including Australian Crown Casino and Hong Kong Galaxy Entertainment Group  have also opened several hotel casinos in Macau. As a result of the surge in number of casinos and construction from other new casino entrants, Macau's economy has been growing rapidly in recent years. Gaming revenues from Macau's casinos are now greater than those of Las Vegas Strip, making Macau the highest-volume gambling center in the world. Numerous other hotel casinos, including Galaxy Cotai Megaresort and Ponte 16, are also to be opened in near future.
Due to the opening of the new hotel casinos and China's easing of travel restrictions, there has been a rapid rise in the number of mainland visitors. From 9.1 million visitors in 2000, arrivals to Macau has grown to 18.7 million visitors in 2005 and 22 million visitors in 2006, with over 50% of the arrivals coming from mainland China and another 30% from Hong Kong. Macau is expected to receive between 24 and 25 million visitors in 2007. Macau also received the Future Award 2007, voted by 26,000 German travel trade members of GoAsia, for being regarded as the most promising future tourism destination in Asia. Macau is currently rated as one of the world's top tourism destinations by the World Tourism Organization.
Macau's manufacturing industries emerged in the first few decades of the 20th century, which mainly consisted of junk building, factories for matches, firecrackers and incense. Modern industries, however, did not take off until the 1970s when the textiles and garments industry was rising rapidly, while other light industries such as plastics, electronics, toys, and artificial flowers also experienced respectable growth. Textiles and garments further increased its dominance in the manufacturing sector towards the end of the 1980s.
Much of Macau's textile industry has moved to the mainland as the Multi-Fiber Agreement is phased out. The territory has relied more on gambling and tourism-related services to generate growth.
Macau is an offshore financial centre, a tax haven, and a free port with no foreign exchange control regimes.  The offshore finance business is regulated and supervised by the Monetary Authority of Macao, while the regulation and supervision of the offshore non-finance business is mainly controlled by the Macau Trade and Investment Promotion Institute. In 2007, Moody's Investors Service upgraded Macau's foreign and local currency government issuer ratings to 'Aa3' from 'A1', citing its government's solid finances as a large net creditor. The rating agency also upgraded Macau's foreign currency bank deposit ceiling to 'Aa3' from 'A1'.
There are twenty other licensed banks, sixteen of which are foreign. Macau has five of the top 500 commercial banks in Asia, including Banco Tai Fung and Industrial and Commercial Bank of China.
In 2014, the construction sectors in Macau engaged 45,368 people. The value of construction was MOP78.15 billion, in which MOP66.88 billion belong to the private sectors. The intermediate consumption was MOP61.03 billion and labor cost was MOP11.35 billion.
Macau has reportedly the highest "media density" in the world - nine Chinese-language dailies, three Portuguese-language dailies, two English-language dailies and about half a dozen Chinese-language weeklies and one Portuguese-language weekly. About two dozen newspapers from Hong Kong, mainland China, Taiwan and the Philippines are shipped to Macau every early morning.
The large role of gaming and tourism underscores a degree of risk for Macau's economy. Because the economy is so reliant on tourism and gambling for its well-being, if the flow of tourists slows, it could come as a shock to the small market. The push for diversification came in the closing years of Portuguese administration, under Governor General Vasco Rocha Vieira, and has continued to the present, under Chief Executive Edmund Ho. The government is seeking foreign investment as a means of economic diversification as well. Much of the foreign investment into Macau, however, has gone into the gaming sector after the end of the monopoly in 2001. Otherwise, foreign companies have entered into the mobile phone market and internet services after telecommunications market liberalisation in 2001.
Prior to the 1930s Macau had a Laissez-Faire type of welfare provision. Publicly funded schools available were taught in Portuguese. The first welfare program was created in the late 1930s – it was called the Public Charity Society. The main objective of the organization is to provide for the poor and orphans. The development of a welfare state was gradual and primitive. In 1947, a number of reforms were made. Most notably, the social relief card was established which was only given to those in need. In the 60s the Public Relief Society became the Public Relief Branch. Services broaden to cover other areas such as disaster reliefs. This is an important addition because Macau have high risks of frequent typhoons. In addition, many facilities were also built, including rehabilitation centers and center for blind and deaf assistance. Throughout the 60s and 70s, housing was provided to the poor, disabled and elderly. Financial aid for health care and education is also provided to poor. During this period the government have also started subsidizing private schools. Another restructuring of the system happened in 1980. The Department of Social Welfare was officially established. Further adjustments were made in the late 80s that separated the department into three branches, including the Macao Governor, Social Welfare Committee and the Department for Social Welfare. It established four principles "equality, efficiency, mutual assistance and participation". Four offices were also set up in Santo António e São Lázaro, São Lourenço e Sé, Nossa Senhora de Fátima, and Ilias. The purpose of these offices is to make it more convenient for people to make a visit and for the workers to also get closer to the locals in their region. In the 90s, an additional office was set up in llhas Verde due to high demand in the Northern region. The department also became increasingly involved in familial issues by offering counseling.
The Social Welfare Bureau – which remained to this day - was established after the handover to China in 1999. Initially Macau faced challenges from a weak economy and high unemployment rate but in 2002, gaming was legalized and increased the government revenue. Due to the rapid economic growth driven by the gambling industry, foreign investments and tourism, the government is now able to provide more public services. Macau's social welfare programs have grown to be comparable to the most developed countries in the world. Free healthcare is universal and offered in public hospitals but private services is also subsidized by 30%, for pregnant women, students, civil servants and people 65 and above, it is completely subsidized. The government extend benefits for many of these citizens. Improvements in the rise of employment and income is also linked to higher satisfaction with quality of life. The government provide 15 years of free education, social insurance and social assistance to all citizens. Similar to a lot of East Asian countries, the social welfare model in Macau does not fit neatly in "the three worlds of welfare capitalism". It has been argued that it functions more like a regulatory welfare regime.
Nevertheless, Macau's public sector appears to be quite small. Workers in the public sector is one of the highest paid occupation due to constitutional law that was set during the handover. Therefore, as a result the government often offer shot-term or part-time contracts to make it more affordable although contracts usually get renew. It is reported that many workers in the police force have left to work in casinos for better pay. Economic growth also brings inequality, competition is getting higher as more foreigner and mainland workers are overtaking local poor in skills. This evidently produced an increase in citizen participation in elections and protests. The focus on the gambling and tourism industry also come at the expense of other sectors. As of 2009, 44.9% of labor work in the tourist industry. It is reported in 2006 that 44 times the population of Macau visited the city that year. Furthermore, all profitable big business like hotels and casinos are owned by foreign investors, which comes at the expense of local family businesses. This had led to a violent protest on Labor Day in 2007. No such civil unrest has ever been record in Macau history before or after the handover but it caught real attention because the city had a GDP growth of 17% the year prior.
Electricity – production: 1.893 billion kWh (2004)
fossil fuel: 100%
other: 0% (1998)
Electricity – consumption: 1.899 billion kWh (2004)
Electricity – exports: 0 kWh (2004)
Electricity – imports: 153.3 million kWh (2004)
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|url=value (help). Hemscott.com. Retrieved 15 November 2007.
Agriculture in Macau is a minor industry in Macau, China. Around 2% of Macau's land is used for agriculture.Association for Promoting the Economy of Macau
The Association for Promoting the Economy of Macau (Associação Promotora para a Economia de Macau) is a political party in the Macau Special Administrative Region of the People's Republic of China. Macau is an entity in which political parties don't play a role. Though some civic groups put forward lists at the elections.Economy of China (disambiguation)
The economy of China refers to the economy of the People's Republic of China (mainland China).
Economy of China may also refer to:
Economic history of China
Economic history of China (1912–1949) (Republic of China on the mainland)
Economic history of China (1949–present) (People's Republic of China)
Economic of the Special Administrative Regions of China
The Economy of Hong Kong
The Economy of Macau
The Economy of Taiwan (Republic of China on Taiwan after 1949)Hengqin
Hengqin, sometimes known as Ilha da Montanha in Portuguese, is an island in Zhuhai, a prefecture-level city and Special Economic Zone in the Guangdong province of the People's Republic of China. It has a population of about 3,000. Parts of Hengqin were leased to Macau by the State Council of the People's Republic of China starting in 2009, with the area expanding. In the leased parts, Macau law applies and remains outside the Great Firewall.
The whole island is designated a special economic district, as Hengqin New Area, similar to Binhai New Area in Tianjin and Pudong New Area in Shanghai.Ho Yin
Ho Yin or He Xian (traditional Chinese: 何賢; simplified Chinese: 何贤; pinyin: Hé Xián; Jyutping: Ho4 Jin4; 1908 - 1983) ComB was a businessman, politician and senior leader of the Chinese community in Macau.Immigration to Macau
With the increase in prosperity and the expansion of the economy of Macau, there is a growing demand from all over the world for residency in the Special Administrative Region.
Immigration Services and related Department is under the Public Security Police Force of Macau.List of Macau billionaires by net worth
This is a list of Macau billionaires based on an annual assessment of wealth and assets compiled and published by Forbes magazine in 2017.List of companies of Macau
Macau is an autonomous territory on the western side of the Pearl River Delta in East Asia. With a population of 650,900 living in an area of 30.5 km2 (11.8 sq mi), it is the most densely populated region in the world.
Macau is among the world's richest regions, and as of 2015 its GDP per capita by purchasing power parity is higher than that of any country in the world, according to the World Bank. It became the world's largest gambling centre in 2006, with the economy heavily dependent on gambling and tourism, as well as manufacturing. According to The World Factbook, Macau has the fourth highest life expectancy in the world. Moreover, it is one of the regions in Asia with a "very high Human Development Index", ranking 18th in the world as of 2014.List of political parties in Macau
Macau is an area where political parties don't play a role. However, some civic groups representing the interests of business, labor, and social welfare put forward lists at the elections. The following is a listing of associations that participated in the most recent legislative elections:
Union for Development
United Citizens Association of Macau
Union for Promoting Progress
Alliance for Change
New Union for Macau's Development
Macau Business Interest Union
Employees Association Joint Candidature Commission
Macau professional Interest Union
Association for Promotion of Social Services and Education
Excellent Culture and Sports Union Association
New Macau Association
New Democratic Macau Association
Prosperous Democratic Macau Association
New Macau Liberals
Association for Together Efforts to Improve the Community
Activism for Democracy Association
Democratic Society Alliance
Association for Promotion of Civic Rights
Supervision by the Lower Class
Workers' Movement FrontMacanese pataca
The Macau pataca or Macanese pataca (Chinese: 澳門圓; Jyutping: ou3 mun4 jyun4; Portuguese: Pataca de Macau; sign: MOP$; code: MOP) is the currency of Macau. It is subdivided into 100 avos (仙; sin), with 10 avos called ho (毫) in Cantonese. The abbreviation MOP$ is commonly used.
Macau has a currency board system under which the legal tender, Macau pataca, is 100 percent backed by foreign exchange reserves, in this case currently the Hong Kong dollar. Moreover, the currency board, Monetary Authority of Macau (AMCM), has a statutory obligation to issue and redeem Macau pataca on demand against the Hong Kong dollar at a fixed exchange rate of HK$1 = MOP$1.03, and without limit.Macau Container Port
Macau Container Port is a small container port facility in Macau, China. The port is located next to Macau International Airport.Macau International Airport
Macau International Airport (IATA: MFM, ICAO: VMMC) (Portuguese: Aeroporto Internacional de Macau) is an international airport in the special administrative region of Macau, situated at the eastern end of Taipa island and neighbouring waters which opened for commercial operations on 9 November 1995, during Portuguese administration of the region.
Since then the airport has been a common transfer point for people traveling between the Mainland and Taiwan, as well as a passenger hub for destinations in mainland China and Southeast Asia. During 2006, the airport handled 5 million passengers and 220,000 tonnes of cargo. In 2017 the number of passengers had increased to 7,165,803 which is more than the 6 million passengers per year the terminal was designed for.Mainland and Macau Closer Economic Partnership Arrangement
The Mainland and Macau Closer Economic Partnership Arrangement, or Closer Economic Partnership Arrangement (CEPA) for short, is an economic agreement between the Government of the Macau Special Administrative Region and the Central People's Government on October 18, 2003. A similar agreement, known as the Mainland and Hong Kong Closer Economic Partnership Arrangement, was signed between the Government of the Hong Kong Special Administrative Region and the Central People's Government of the People's Republic of China, signed on June 29, 2003.
Regular supplements with further liberalisations have been signed between the Mainland and Macau governments. The most recent, Supplement VIII (also referred to as CEPA VIII), was signed in December 2011 and enters into effect on 1 April 2012.
The two agreements and additional supplements were signed in the Chinese language. The Chinese text is therefore the authoritative text.Monetary Authority of Macao
The Monetary Authority of Macao also known as Monetary Authority of Macau (Portuguese: Autoridade Monetária de Macau, abbr. as AMCM; Chinese: 澳門金融管理局) is the currency board and the de facto central bank of Macau. The regulatory institution established on December 20, 1999, upon the transfer of the sovereignty of Macau from Portugal to the People's Republic of China as the Macau Special Administrative Region (MSAR).Red Market
The Red Market (Chinese: 紅街市大樓; Portuguese: Edifício do Mercado Vermelho or Mercado Almirante Lacerda) is a three-story wet market building in Santo António, Macau, China.Tourism in Macau
Tourism is a major industry in Macau. It is famous for the blend of Portuguese and Chinese cultures and its gambling industry, which includes Casino Lisboa, Macau, Sands Macau, The Venetian Macao, and Wynn Macau.Transport in Macau
Transport in Macau includes road, sea and air transport. Road transport is the primary mode of transport within Macau as there are no railways. The main forms of public transport are buses and taxis. A light rail system is currently under construction.
Modes of transport out of Macau include ferries to Hong Kong and mainland China from two ferry terminals, as well as helicopter service to Hong Kong. International flights are available from Macau International Airport.Wealth Partaking Scheme
Wealth Partaking Scheme (Chinese: 現金分享計劃; Portuguese: Plano de comparticipação pecuniária no desenvolvimento económico) is a cash disbursement policy to holders of a Macau Resident Identity Card by the Macau Special Administrative Region since 2008. The main purpose of the scheme is to share the results of the region's economic development with its people and help mitigate the effects of inflation.