Macao's BOP registers surplus of over 3.5 billion USD in 2007

MACAO, Dec. 30 (Chinese media) -- Macao's overall BOP (balance of payments) recorded a surplus of 28.2 billion patacas (3.57 billion U.S. dollars) in 2007, according to the figures released on Tuesday by the SAR's (Special Administrative Region) Monetary Authority.

The BOP is a statistical statement that summarizes external transactions of an economy with the rest of the world. The BOP of Macao SAR consists of current account, non-reserve capital and financial account, and change in reserve assets.

Although the visible trade deficit widened to 40.9 billion patacas (5.18 billion dollars), the fast growing invisible trade surplus brought about by the buoyant tourism industry, as well as a marked fall in net factor income paid abroad, more than offset the deficit in the visible trade in 2007, the Authority said.

The current account surplus therefore reached 47.1 billion patacas (5.96 billion dollars), which was 23.7 billion patacas (three billion dollars) higher than the 23.4-billion-pataca (2.96 billion) surplus shown in the previous year.

In 2007, the favorable economic condition continued to boost domestic demand. Imports of goods rose by 18.1 percent year-on- year, whereas exports of goods remained virtually unchanged. Surplus in the services account surged from 69.3 billion (8.77 billion dollars) to 93.8 billion patacas (11.9 billion dollars). Travel services recorded a 39.8-percent increase in surplus to 105. 7 billion patacas (13.4 billion dollars), whereas transportation and other services summed up to a deficit of 11.9 billion patacas (1.5 billion dollars).

The statistics also showed that the income account, which reflects net external factor income, recorded a net outflow of 1.2billion patacas (151 million dollars) in 2007, approximately one- tenth the level in 2006. This stemmed mainly from the significant rise in the inflow of factor income and the substantial reduction in profits earned by foreign direct investors in Macao, the Authority said.

Net inflows in the capital account fell further from 3.5 billion patacas (443 million dollars) in 2006 to 2.6 billion patacas (329 million dollars) in 2007 mainly due to a drop in inflows of migrants' transfers. Meanwhile, the BOP recorded an enlarged surplus in 2007, which caused reserve assets (after price, exchange rate and other adjustments) to increase significantly by 28.2 billion patacas (3.57 billion dollars).