Macao's expenditure-based GDP (Gross Domestic Product) expanded by 11.3 percent year-on-year in real terms in the third quarter of 2008, with its gross gaming revenue growing at a far slower pace than the previous quarters, the city's Statistics and Census Service (DSEC) said on Monday.

The DSEC figures showed that local gaming industry, the pillar of the Special Administration Region's (SAR) economy, registered year-on-year growth of 27.6 percent in the third quarter, considerably lower than the 61.8 percent and 47.6 percent increases recorded in the first and the second quarters this year.

In addition, total visitor spending (excluding gaming expenses) rose merely by 4.2 percent, and gross fixed capital formation dropped by 25.2 percent upon shrinking investment in construction and equipment in the period, according to the DSEC.

In terms of major GDP components, local private consumption expenditure increased by 5.1 percent in the third quarter, moderating from the 5.9 percent growth in the second quarter. Household final consumption expenditure in the domestic market rose by 5.3 percent, and that abroad grew by 1.3 percent, with the expenditure in the Chinese mainland amounting to 665 million patacas (US$83.1 million).

In the third quarter, the SAR government's final consumption expenditure increased by 1.6 percent, lower than the 6.2 percent rise in the second quarter, with compensation of employees going up by 0.1 percent and net purchases of goods and services rising by 6.7 percent.

Meanwhile, local gross fixed capital formation, a gauge of investment, has declined for four consecutive quarters, down substantially by 25.2 percent in the third quarter, as against the19.1 percent drop in the second quarter.

In the private sector, total investment contracted by 24.1 percent, on account of the 22.3 percent decrease in construction investment and the 30.4 percent drop in equipment investment. Total government investment fell by 46.5 percent, in which construction investment plunged by 58.1 percent, while equipment investment rose by 22 percent, according to the DSEC.

(Xinhua News Agency December 2, 2008)