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. The Hong Kong dollar is itself a reserve currency for the Macanese pataca, which is pegged at the The official rate of around 1 Hong Kong dollar to 1.03 Macanese pataca. In 2020, because of the COVID-19 pandemic, Macau has seen a massive decline of the economy, as it collapsed by 50%, nearly destroying the economy.
The following tables and chart will tell the change details in last 5-10 years:
Macau Distribution of GDP across economic sectors:
Here attached the last 10 years chart of Macau GDP: (amount in billion USD):
3 Sectors of the Economy – Agriculture, Industry and Services:
Macau has a small land under cultivation to produce fresh vegetables. It has a very small livestock industry supplying chickens and ducks to restaurants. There is a small fishing fleets in Macau which supplies fishes to restaurants and fish markets.
Industry is not an important part in the Macau's economy. It accounts for 4.3% of GDP and employed almost 10% of the workforce.
The main industries in Macau are clothing, textiles, electronics, footwear and toys. While textile industry plays the major role in Macau industries sector.
Service sector is an important part in the Macau's economy. It contributes almost 95.7% in the GDP and employed almost 90% of the total Macau's workforce.
Major Industries in this Sector:
Finance: Macau is an offshore financial center, 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. 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.
Tourism and Gambling: Tourism is the backbone of Macau's economy, and much of it geared towards gambling, which was legalized in the 19th century and has since been the linchpin of the economy and an important source of revenue for the government. Macau also boasts a huge number of hotels, from budget to luxury, along with which comes a myriad of food options, activities and historical sights to explore. In 2019, contribution of travel and tourism to GDP for Macau was 42 billion US dollars. Contribution of travel and tourism to GDP of Macau increased from 2.9 billion US dollars in 2000 to 42 billion US dollars in 2019 growing at an average annual rate of 16.44%.
Top Companies in Macau:
|Company Name||Sector||Market Cap (USD)|
|MGM China Holdings||Hotels||6.616B|
|Macau Legend Development||Consumer Services||0.919B|
|Mecom Power and Construction||Construction||0.182B|
|Space Group Holdings||Construction||0.122B|
|Deswell Industries||Capital Goods||0.041B|
|Vodatel Network Holdings||Technology||0.011B|