Information from the Statistics and Census Service (DSEC) indicated that Gross Domestic Product (GDP) expanded by 116.1% year-on-year in real terms in the third quarter of 2023, attributable to the thriving exports of services, of which the growth in exports of gaming services and other tourism services accelerated to 781.4% and 255.4% respectively; in addition, domestic demand increased by 15.7% owing to a continued rebound in gross fixed capital formation and private consumption expenditure. All these contributed to the sustained and strong economic recovery of Macao. Imports of goods and services rose by 25.7% and 58.2% respectively, whereas exports of goods reduced by 9.0%. The implicit deflator of GDP, which measures the overall changes in prices, went up by 3.4% year-on-year. For the first three quarters of 2023, GDP surged by 77.7% year-on-year in real terms, and the overall economic output of Macao returned to 77.4% of its level in the same period of 2019.
The improving economic environment and employment situation continued to boost private consumption activities. The overall private consumption went up by 29.6% year-on-year, an accelerated growth from the second quarter. Household final consumption expenditure in the domestic market and abroad rose by 22.4% and 138.7% respectively year-on-year.
Government final consumption expenditure reduced by 23.6% year-on-year, owing to the conclusion of the livelihood subsidy scheme of the SAR government. Net purchases of goods and services decreased by 41.7% while compensation of employees rose by 3.1%.
Gross fixed capital formation expanded by 45.5% year-on-year, marking positive growth for two consecutive quarters; construction investment and equipment investment showed respective increases of 43.9% and 50.4%. With the ongoing construction of large infrastructure and public housing, public construction investment and public equipment investment went up by 26.8% and 139.0% respectively year-on-year. Meanwhile, private construction investment swelled by 61.5% year-on-year, as gaming enterprises stepped up investment amid the revival of the local economy. Besides, private equipment investment rose by 39.0%.
With respect to merchandise trade, rising demand drove up the net import value of goods by 51.6% year-on-year.
Regarding service trade, number of visitor arrivals in the third quarter of 2023 soared by 821.3% year-on-year to 8.3 million, corresponding to 83.5% of the visitor number in the same quarter of 2019; this continued to underpin the rebound in external demand for services, with exports of gaming services and exports of other tourism services leaping by 781.4% and 255.4% respectively year-on-year. Total exports of services showed an uplift of 284.1% year-on-year. In addition, imports of services grew by 58.2%.
For the first three quarters of 2023, GDP jumped by 77.7% year-on-year in real terms. In terms of the major components of GDP, private consumption expenditure rose by 11.6% while government final consumption expenditure went down by 0.7%. Gross fixed capital formation increased by 12.9%. Exports of goods decreased by 27.7% while imports of goods went up by 2.3%. Exports of services surged by 156.5%, of which exports of gaming services leapt by 308.8%. Imports of services recorded a rise of 40.9%.
Given the complexity of the data required to compile GDP, DSEC compiles the first release of GDP based on the available data, and publishes the figures at the best possible time to the public, in accordance with international recommendations. When more data become available, the GDP figures will be revised. In the context of Macao, DSEC conducts annual surveys on major economic activities in the third quarter of every year. The information collected is used for the compilation of the production-based GDP, as well as for the revision of the previously published expenditure-based GDP data by incorporating other new data obtained.
According to the results of the annual surveys on economic activities and other data in 2022, the rate of change of GDP for 2022 was revised to -21.5%; in addition, the rates of change for the first quarter, the second quarter and the first half of 2023 were revised to 33.0%, 102.0% and 62.3% respectively.