MACAU, November 18 - 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).

The economy of Macao, which is heavily reliant on tourism, was hit hard by the pandemic in 2020. The pandemic situation, despite remaining unstable in 2021, has improved as compared to 2020. In view of a rebound in demand, Gross Value Added of all economic activities increased by 27.1% year-on-year in real terms.

Changes in Industrial Structure

Gross Value Added of the secondary sector rose by 5.2% in real terms in 2021, and yet its relative importance to total Gross Value Added dropped by 1.0 percentage point to 7.7%. The share of the Construction sector decreased by 0.6 percentage points to 5.8%, and that of the Electricity, Gas & Water Supply sector fell by 0.3 percentage points to 1.1%. Meanwhile, the share of the Manufacturing sector held steady year-on-year.

Gross Value Added of the tertiary sector surged by 29.1% in real terms, with its relative importance to total Gross Value Added rising by 1.0 percentage point to 92.3%. The share of non-gaming services dropped by 3.6 percentage points year-on-year to 66.5%, while that of Gaming & Junket Activities grew by 4.6 percentage points to 25.8%.

Primary Distribution of Income

Primary distribution of income refers to the distribution of Gross Domestic Product (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 MOP42.3 billion, MOP88.2 billion and MOP116.3 billion respectively in 2021, accounting for 17.2%, 35.7% and 47.1% of GDP. Compensation of Employees recorded an increase of 0.9% year-on-year; as its growth was smaller than the rise in Taxes on Production & Imports and Operating Surplus, the relative importance of Compensation of Employees to GDP decreased by 11.1 percentage points year-on-year. Meanwhile, the shares of Operating Surplus and Taxes on Production & Imports rose by 8.9 percentage points and 2.2 percentage points respectively.

Primary Distribution of Income (Million MOP)

	2019	2020	2021
Taxes on Production & Imports	121,555	29,714	42,348
Operating Surplus	189,265	53,168	88,239
Compensation of Employees	125,911	115,259	116,329

Changes in Gross Value Added

Gross Value Added of the secondary sector went up by 5.2% year-on-year in real terms in 2021. Gross Value Added of the Construction sector rose by 2.5%, underpinned by the growth in receipts from construction works performed which was larger than the rise in intermediate consumption. Gross Value Added of the Manufacturing sector expanded by 25.4% year-on-year in real terms, driven by the growth of Manufacture of Food Products & Beverages and Manufacture of Cement & Concrete.

Gross Value Added of the tertiary sector leapt by 29.1% year-on-year in real terms, owing to an upsurge of 51.8% in Gross Value Added of Gaming & Junket Activities. All economic activities, except Real Estate Activities and Renting & Business Activities, registered a pickup in Gross Value Added, with Hotels & Similar Activities (+343.5%), Wholesale & Retail Trade (+75.2%) and Financial Activities (+52.9%) recording relatively large growth.

GDP at producers’ prices by the production approach

Economic activity		Gross value added at current prices (million MOP)		Real growth rate (%)			Relative importance (%)		Change in relative importance (p.p.)
		2020	2021	2020		2021	2020	2021
Secondary sector		17,177	19,055	-9.9		5.2	8.7	7.7	-1.0
	Manufacturing	1,682	2,053	-36.7		25.4	0.9	0.8	0#
	Electricity, gas & water supply	2,838	2,772	-1.0		5.3	1.4	1.1	-0.3
	Construction	12,657	14,230	-6.9		2.5	6.4	5.8	-0.6
	Tertiary sector	180,363	227,110	-56.1		29.1	91.3	92.3	1.0
	Wholesale & retail trade	13,852	21,555	-36.7		75.2	7.0	8.8	1.7
	Hotels & similar activities	2,217	7,211	-80.1		343.5	1.1	2.9	1.8
	Restaurants & similar activities	3,224	3,923	-54.5		18.6	1.6	1.6	0#
	Transport, storage & communications	6,005	6,660	-47.6		11.3	3.0	2.7	-0.3
	Financial activities	24,922	37,965	-10.0		52.9	12.6	15.4	2.8
	Real estate activities	34,612	32,201	-11.1		-6.1	17.5	13.1	-4.4
	Renting & business activities	11,848	11,375	-37.9		-3.7	6.0	4.6	-1.4
	Public administration	19,830	20,061	1.4		1.2	10.0	8.1	-1.9
	Education	8,905	9,123	1.1		7.4	4.5	3.7	-0.8
	Health & social work	6,996	7,458	-0.8		5.8	3.5	3.0	-0.5
	Gaming & junket activities	41,809	63,420	-81.4		51.8	21.2	25.8	4.6
Other service industries		6,142	6,158	-41.7		-5.1	3.1	2.5	-0.6
Total		197,540	246,165	-54.1	27.1		100.0	100.0	-
Taxes on imports		602	750	12.5	24.8		..	..	..
GDP		198,141	246,915	-54.0	27.1		..	..	..

-   Absolute value equals zero     ..  Not applicable        

 p.p.  Percentage point   0^#   Magnitude less than half of the unit employed

Note: Due to rounding, total may not correspond to the sum of partial figures.