Information from the Statistics and Census Service (DSEC) indicated Gross Domestic Product (GDP) decreased by 2.1% year-on-year in real terms, the first negative quarterly growth in five years. Economic downturn in the third quarter was triggered by a substantial fall-back in exports of services, of which continuous decline in exports of gaming services widened further to 12.3% and exports of other tourism services decreased by 0.7%. However, private consumption expenditure and government final consumption expenditure increased by 7.2% and 8.1% respectively, private investment surged by 41.5%, indicating that domestic demand remained vigorous; besides, merchandise exports increased by 11.4%. Economic growth for the first three quarters of 2014 narrowed further to 6.0% in real terms; the implicit deflator of GDP that measures changes in prices increased by 8.9% year-on-year in the third quarter. Steady growth in private consumption expenditure. Full employment of the labour force and soaring manpower needs were conducive to secure growth in total employment and working income, leading private consumption expenditure to increase by 7.2% year-on-year. Household final consumption expenditure in the domestic market and abroad increased by 6.7% and 10.6% respectively. Government final consumption expenditure increased by 8.1% year-on-year. Compensation of employees rose by 2.6%, and net purchases of goods and services increased by 14.2%. Expanding investment lessened magnitude of economic contraction. Gross fixed capital formation, the gauge of investment, continued to expand and rise by 38.1% year-on-year. Construction of the major tourism and gaming facilities was underway, bringing about a 41.5% growth in private investment, with investment in construction and equipment rising by 43.8% and 28.9% respectively. Government investment increased by 5.0%, of which public construction investment expanded by 15.0% but equipment investment shrank by 34.7%. Increase in merchandise trade continued. Merchandise exports grew by 11.4% year-on-year as external demand increased; meanwhile, rising private investment, private consumption expenditure and visitors induced merchandise imports to expand by 12.4% year-on-year. Sluggish service trade as leading cause of downturn. The decline in exports of gaming services deteriorated, slowing further by 12.3% year-on-year; albeit the increase in visitor arrivals, lower visitor spending resulted in a 0.7% decrease in exports of other tourism services. In light of the negative growth posted in exports of gaming services and other tourism services, total exports of services underwent an extensive fall-back and tumbled by 9.9% year-on-year, while imports of services decreased by 17.8%.
