Overall Situation
Chart 3: Net Flows in the Financial Account, 2018-2019
-100,000 -50,000 0 50,000 100,000 150,000 200,000
2018 2019
MOP million
Direct investment Portfolio investment Financial derivatives Other investment Reserve assets
Note: In BPM6, outflows in both reserve and non-reserve financial assets are of positive signs while inflows are of negative signs.
Balança de Pagamentos 2019 Balance of Payments 2019
國際收支平衡表 二零一九年
46
Macao’s direct investment assets rose by MOP8.0 billion in 2019, as against a drop of MOP1.9 billion in 2018, mainly due to an increment in claims on external fellow enterprises by Macao enterprises. Meanwhile, direct investment liabilities grew substantially from an increase of MOP12.4 billion in 2018 to an increase of MOP52.3 billion in 2019, attributable to the surge in claims on Macao enterprises by foreign direct investors. As the amount of inflows exceeded that of outflows, the net inflow of direct investment rose from MOP14.3 billion in 2018 to MOP44.3 billion in 2019.
Portfolio investment reversed its pattern of fund flow from a net inflow of MOP35.8 billion in 2018 to a net outflow of MOP126.7 billion in 2019, as the growth of external securities investment of Macao residents (including individuals, the government and other legal entities but excluding Macao’s foreign exchange reserves) soared from MOP57.0 billion in 2018 to MOP199.6 billion in 2019. Analysed by sector, the net external portfolio investment of banks rose by MOP11.9 billion, while that of non-banks grew by MOP114.8 billion, with the government sector increasing by MOP63.3 billion. In terms of investment instruments, debt securities constituted the major share of portfolio investment, channelling a net outflow of MOP88.9 billion in 2019. On the other hand, financial derivatives further recorded a net inflow of funds, which rose from MOP2.5 billion in 2018 to MOP4.8 billion in 2019.
Other investment continued to register a net outflow of funds, with the amount plunging from MOP156.4 billion in 2018 to MOP1.3 billion in 2019, mainly attributable to notable deceleration in the growth of foreign currencies and external deposits held by Macao residents during the year.
Analysed by sector, banks showed a net inflow of MOP6.7 billion in other investment whereas other sectors generated a net outflow of MOP8.1 billion. Regarding the components, external loans of Macao residents rose by MOP12.0 billion while loans granted to external parties by local banks grew by MOP51.4 billion. Foreign assets in currency and deposits held by local residents rose by MOP3.2 billion while non-resident deposits with the local banking sector swelled by MOP60.7 billion. The remainder of external assets and liabilities increased by MOP24.4 billion and MOP4.8 billion respectively.
Adding up all types of investment in the non-reserve financial account, the banking sector registered a net inflow of funds (or a decrease in net external assets) of MOP4.6 billion in 2019, as against a net outflow of funds (or an increase in net external assets) totalling MOP65.0 billion in 2018. On the other hand, other sectors continued to record a net outflow of funds, with the amount increasing notably from MOP38.8 billion in 2018 to MOP83.5 billion in 2019.
Reserve assets in the financial account record the net change in Macao’s foreign exchange reserves held by the Monetary Authority of Macao. Reserve assets (after excluding the effects of price and exchange rate changes and other adjustments) rose by MOP12.1 billion in 2019, as against a decrease of MOP2.1 billion in 2018, leading to an overall BOP surplus of MOP12.1 billion in 2019. Macao’s international reserves as at end-2019 were equivalent to a value of 15.3 months of imports of goods and services, compared to 13.3 months in 2018.
Balança de Pagamentos 2019 Balance of Payments 2019
國際收支平衡表 二零一九年
48
Table 1. Balance of Payments: Macao SAR
MOP million 2015r 2016r 2017r 2018r 2019@ 1. Current account 83,946.6 95,592.5 124,585.0 147,750.1 149,754.2
Goods
-95,567.5 -82,325.4 -85,600.4 -87,458.1 -83,959.0Services
234,207.9 230,537.5 272,472.5 308,197.9 309,947.2Primary income
-38,424.6 -35,439.4 -44,486.5 -51,393.2 -51,056.4Secondary income
-16,269.3 -17,180.2 -17,800.7 -21,596.5 -25,177.62. Capital account -60.4 -545.8 -359.7 -128.4 -268.1
3. Financial account1 47,533.9 98,932.0 116,454.6 101,627.4 91,042.9
Financial non-reserve assets (net change)
28,971.8 95,392.5 114,902.1 103,739.1 78,910.5 -5,514.5 -15,585.9 7,637.8 -14,323.4 -44,323.2 97,431.3 24,285.3 84,225.5 -35,820.2 126,685.0 -2,685.7 2,758.2 -2,511.4 -2,506.1 -4,796.9 -60,259.4 83,934.9 25,550.2 156,388.8 1,345.5Reserve assets
2 18,562.1 3,539.6 1,552.5 -2,111.8 12,132.54. Errors and omissions -36,352.3 3,885.4 -7,770.7 -45,994.3 -58,443.2 Overall balance of payments 18,562.1 3,539.6 1,552.5 -2,111.8 12,132.5
Notes: 1 "+" represents net increase in financial assets or net reduction in liabilities, indicating an outflow of funds;
"-" represents net reduction in financial assets or net increase in liabilities, indicating an inflow of funds.
2 Excluding price and exchange rate changes as well as other adjustments.
Direct investment
Portfolio investment
Financial derivatives
Other investment
Table 2. Balance of Payments Sub-account Components: Current Account
MOP million
Standard Components 2015r 2016r 2017r 2018r 2019@
Current account 83,946.6 95,592.5 124,585.0 147,750.1 149,754.2
Credit 319,766.0 313,638.0 369,837.8 426,026.9 436,988.9
Debit 235,819.4 218,045.5 245,252.8 278,276.8 287,234.7
Goods -95,567.5 -82,325.4 -85,600.4 -87,458.1 -83,959.0
15,649.6 12,364.5 14,014.7 15,896.1 14,983.0 111,217.1 94,689.9 99,615.0 103,354.2 98,942.0
Services 234,207.9 230,537.5 272,472.5 308,197.9 309,947.2
266,726.5 263,786.7 311,625.9 352,376.0 351,036.2
Transport 4,627.1 4,707.0 4,683.6 5,535.0 5,442.1
Travel 248,339.0 244,901.2 289,574.5 329,978.9 325,999.4
Financial 8,730.6 7,445.4 7,670.7 9,453.0 11,111.5
Insurance and pension 1,385.0 3,475.7 3,754.2 3,047.9 4,287.3
Others 3,644.8 3,257.3 5,943.0 4,361.2 4,195.9
32,518.6 33,249.2 39,153.3 44,178.1 41,089.0
Transport 3,868.2 3,447.0 3,460.6 3,779.9 3,627.7
Travel 10,585.7 11,228.6 12,840.1 14,827.2 15,228.6
Financial 3,519.0 4,545.6 5,122.2 5,185.7 5,646.5
Insurance and pension 1,348.9 1,289.5 1,448.8 1,601.1 1,863.8
Others 13,196.8 12,738.4 16,281.6 18,784.1 14,722.4
Primary income -38,424.6 -35,439.4 -44,486.5 -51,393.2 -51,056.4
36,796.3 36,899.7 42,409.4 56,237.7 69,538.6
Investment income 36,796.3 36,899.7 42,409.4 56,237.7 69,538.6
Direct investment income 956.0 446.8 1,697.8 2,126.0 1,784.5
Income on equity and investment fund shares 835.2 351.7 1,594.1 1,881.5 1,550.6
93.6 87.7 332.9 507.7 1,063.8
Reinvested earnings 741.6 264.0 1,261.1 1,373.8 486.8
Interest 120.8 95.1 103.8 244.5 233.9
Portfolio investment income 14,393.7 11,299.0 15,494.4 17,994.3 22,775.1 Income on equity and investment fund shares 4,547.0 1,907.6 3,698.8 4,084.8 4,646.8
Interest 9,846.7 9,391.4 11,795.7 13,909.5 18,128.2
Short-term 389.9 268.9 391.1 646.7 755.9
Long-term 9,456.8 9,122.5 11,404.6 13,262.8 17,372.4
Other investment income 20,217.5 23,666.3 22,997.2 33,188.1 41,512.0
Income on reserve assets 1,229.2 1,487.6 2,220.0 2,929.3 3,467.1
Compensation of employees n.a. n.a. n.a. n.a. n.a.
Other primary income n.a. n.a. n.a. n.a. n.a.
75,220.9 72,339.1 86,895.9 107,630.9 120,595.0
Investment income 65,234.1 61,068.8 75,305.4 95,270.8 107,441.4
Direct investment income 52,743.7 49,439.8 60,946.8 74,129.2 80,511.8 Income on equity and investment fund shares 52,100.7 48,766.4 59,993.9 73,857.6 79,640.1 49,514.5 26,350.0 53,282.7 52,836.5 55,143.2
Reinvested earnings 2,586.2 22,416.3 6,711.2 21,021.1 24,496.9
Interest 643.0 673.5 952.9 271.6 871.8
Portfolio investment income 964.6 771.3 2,458.4 4,120.9 5,365.4
Income on equity and investment fund shares 22.2 29.3 54.5 82.2 117.3
Interest 942.4 741.9 2,403.8 4,038.6 5,248.1
Short-term 781.7 548.4 1,886.8 3,157.7 3,982.5
Long-term 160.7 193.6 517.0 880.9 1,265.6
Other investment income 11,525.9 10,857.7 11,900.2 17,020.6 21,564.1 Compensation of employees 9,953.6 11,237.4 11,557.6 12,327.3 13,120.8
Other primary income 33.2 32.9 32.9 32.9 32.9
-16,269.3 -17,180.2 -17,800.7 -21,596.5 -25,177.6
593.5 587.1 1,787.8 1,517.1 1,431.0
n.a. n.a. n.a. n.a. n.a.
593.5 587.1 1,787.8 1,517.1 1,431.0
16,862.8 17,767.3 19,588.6 23,113.6 26,608.6 1,123.9 1,317.2 1,390.1 1,456.0 1,640.3 15,738.8 16,450.1 18,198.5 21,657.6 24,968.3 Exports
Imports
Exports
Imports
Receipts
Other sectors Payments
General government Other sectors
Dividends and withdrawals from income of quasi-corporations
Payments
Dividends and withdrawals from income of quasi-corporations
Secondary income Receipts
General government
Balança de Pagamentos 2019 Balance of Payments 2019
國際收支平衡表 二零一九年
50
Table 3. Balance of Payments Sub-account Components: Capital Account and Financial Account
MOP million
Standard Components 2015r 2016r 2017r 2018r 2019@
Capital account -60.4 -545.8 -359.7 -128.4 -268.1
Credit 0.0 0.0 0.0 0.0 0.0
Debit 60.4 545.8 359.7 128.4 268.1
Financial account1 47,533.9 98,932.0 116,454.6 101,627.4 91,042.9
Financial non-reserve assets (net change) 28,971.8 95,392.5 114,902.1 103,739.1 78,910.5
Direct investment -5,514.5 -15,585.9 7,637.8 -14,323.4 -44,323.2
Net acquisition of financial assets -1,635.2 -613.9 19,244.7 -1,911.0 8,009.5 Equity and investment fund shares 5,934.3 6,703.7 10,712.1 7,704.0 5,611.3 Equity other than reinvestment of earnings 5,192.7 6,439.7 9,450.9 6,330.2 5,124.5 Direct investor in direct investment enterprises 5,192.7 6,439.7 9,451.0 6,330.2 5,124.4 Direct investment enterprises in direct investor 0.0 0.0 0.0 0.0 0.1
Between fellow enterprises n.a. n.a. n.a. n.a. n.a.
Reinvestment of earnings 741.6 264.0 1,261.1 1,373.8 486.8
Debt instruments -7,569.5 -7,317.6 8,532.7 -9,615.0 2,398.2
Direct investor in direct investment enterprises -6,303.2 465.1 3,376.0 -3,220.1 598.4 Direct investment enterprises in direct investor -422.1 2,625.9 1,934.8 -1,329.4 534.4 Between fellow enterprises -844.2 -10,408.6 3,221.9 -5,065.5 1,265.4 Net incurrence of liabilities 3,879.3 14,972.0 11,606.9 12,412.4 52,332.7 Equity and investment fund shares 880.8 18,960.2 10,559.9 27,330.8 24,476.1 Equity other than reinvestment of earnings -1,705.4 -3,456.1 3,848.7 6,309.7 -20.8 Direct investor in direct investment enterprises -1,705.6 -3,456.3 3,848.1 6,309.6 -171.6 Direct investment enterprises in direct investor 0.0 0.0 0.0 0.0 0.0
Between fellow enterprises 0.2 0.2 0.6 0.1 150.7
Reinvestment of earnings 2,586.2 22,416.3 6,711.2 21,021.1 24,496.9
Debt instruments 2,998.5 -3,988.3 1,047.0 -14,918.4 27,856.6
Direct investor in direct investment enterprises 1,158.2 -8,852.4 -9,070.4 -2,531.1 29,302.5 Direct investment enterprises in direct investor -574.0 39.3 -111.2 138.0 -178.8 Between fellow enterprises 2,414.3 4,824.9 10,228.6 -12,525.3 -1,267.1
Portfolio investment 97,431.3 24,285.3 84,225.5 -35,820.2 126,685.0
Net acquisition of financial assets 88,363.2 37,977.7 115,895.8 56,970.4 199,572.3 Equity and investment fund shares 46,121.8 10,104.9 20,211.3 28,977.0 37,807.9
Banks 2,605.0 868.5 -955.1 2,565.3 645.2
Other sectors 43,516.8 9,236.4 21,166.4 26,411.7 37,162.7
Debt securities 42,241.4 27,872.8 95,684.6 27,993.4 161,764.4
Banks 28,153.0 29,902.3 59,249.3 33,544.6 84,103.8
Short-term 6,807.1 -6,146.4 13,455.2 -11,222.8 16,840.0
Long-term 21,345.9 36,048.7 45,794.1 44,767.4 67,263.8
Other sectors 14,088.5 -2,029.5 36,435.3 -5,551.2 77,660.6
Short-term -303.1 1,068.6 -137.2 -653.1 1,443.4
Long-term 14,391.6 -3,098.1 36,572.5 -4,898.1 76,217.2
Net incurrence of liabilities -9,068.2 13,692.4 31,670.3 92,790.6 72,887.3
Equity and investment fund shares 442.7 0.0 -3.0 67.7 20.2
Banks 442.7 0.0 -3.0 61.7 20.0
Other sectors 0.0 0.0 0.0 6.0 0.2
Debt securities -9,510.8 13,692.4 31,673.3 92,722.9 72,867.1
Banks -9,510.8 13,692.4 31,673.3 92,722.9 72,867.1
Short-term -11,056.9 14,279.0 20,329.9 76,794.3 60,420.7
Long-term 1,546.1 -586.6 11,343.4 15,928.6 12,446.4
Other sectors n.a. n.a. n.a. n.a. n.a.
Short-term n.a. n.a. n.a. n.a. n.a.