Overall Situation
Chart 3: Net Flows in the Financial Account, 2016-2017
-20,000 0 20,000 40,000 60,000 80,000 100,000
2016 2017
106MOP
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 2017 Balance of Payments 2017
國際收支平衡表 二零一七年
46
Foreign direct investment of Macao enterprises continued to increase while the relevant amount rose markedly from MOP0.1 billion in 2016 to MOP12.8 billion in 2017, mainly due to a significant increase in claims on fellow enterprises abroad by Macao enterprises. On the other hand, direct investment placed by non-residents in Macao plunged from MOP13.4 billion in 2016 to MOP3.5 billion in 2017, attributable to the notably slower growth in reinvested earnings. As the net amount of outflows outpaced that of inflows, the fund flow of the direct investment account shifted from a net inflow of MOP13.3 billion in 2016 to a net outflow of MOP9.4 billion in 2017.
The net outflow of funds recorded in portfolio investment reached MOP81.0 billion in 2017, up significantly from the net outflow of MOP24.4 billion in 2016, as the external portfolio investment of Macao residents (including individuals, the government and other legal entities) soared from MOP38.1 billion in 2016 to MOP112.6 billion in 2017. Analysed by sector, the net overseas portfolio investment of banks increased by MOP26.6 billion, while that of non-banks grew by MOP54.3 billion, with the government sector recording an increase of MOP27.1 billion. In terms of investment instruments, debt securities constituted the major share of portfolio investment, channelling a net outflow of MOP60.8 billion in 2017. On the other hand, financial derivatives shifted from a net outflow of MOP2.8 billion in 2016 to a net inflow of MOP2.5 billion in 2017, mainly due to a substantial decrease in net cash outflows from non-residents’ financial derivative contracts with local banks during the reference year.
Other investment continued to register a net outflow of funds, of which both assets and liabilities increased. As liabilities rose by a larger scale, the net outflow of other investment thus moderated from MOP83.9 billion in 2016 to MOP44.6 billion in 2017.
Analysed by sector, banks showed a net outflow of MOP21.4 billion in other investment while other sectors generated another net outflow of MOP23.2 billion.
Regarding the components, external loans extended to Macao residents dropped by MOP13.5 billion whereas loans granted abroad shifted from a decrease of MOP11.3 billion in 2016 to an increase of MOP91.6 billion in 2017. Assets in currency and deposits held by residents reduced by MOP66.0 billion while non-resident deposits
with the local banking sector increased by MOP7.7 billion. Other external assets and liabilities rose by MOP29.6 billion and MOP16.3 billion respectively.
Adding up all types of investment in the non-reserve financial account, the banking sector registered a net outflow of funds (or a net increase in external assets) of MOP42.4 billion in 2017, which narrowed from MOP80.6 billion recorded in 2016.
On the other hand, the net outflow in other sectors grew notably from MOP17.2 billion in 2016 to MOP90.1 billion in 2017.
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 as well as other adjustments, rose by MOP1.6 billion (an increase of MOP3.5 billion recorded in 2016), leading to an overall BOP surplus of MOP1.6 billion in 2017. Macao’s international reserves as at end-2017 were equivalent to a value of approximately 14.4 months of imports of goods and services, compared to 14.9 months in 2016.
Balança de Pagamentos 2017 Balance of Payments 2017
國際收支平衡表 二零一七年
48
Table 1. Balance of Payments: Macao SAR
106 MOP 2013r 2014r 2015r 2016r 2017@
1. Current account 165,710.4 151,053.6 91,700.9 98,670.8 133,727.1 Goods -84,249.1 -94,498.8 -92,745.9 -80,957.4 -84,364.2 Services 332,336.9 330,165.0 234,884.8 231,958.1 274,952.7 Primary income -64,904.8 -63,339.2 -29,287.1 -29,804.5 -32,863.2 Secondary income -17,472.5 -21,273.4 -21,150.9 -22,525.4 -23,998.2
2. Capital account -5.1 -14.9 -60.4 -545.8 -359.5
3. Financial account1 141,502.0 101,628.7 41,060.5 101,320.1 134,040.0 Financial non-reserve assets (net change) 146,068.9 101,011.7 22,498.4 97,780.6 132,487.5 -11,785.7 -7,763.8 -4,689.2 -13,268.9 9,385.8 99,421.0 45,238.8 97,431.3 24,359.2 80,964.1 -5,028.1 -2,551.7 -2,685.7 2,758.2 -2,511.4 63,461.6 66,088.3 -67,558.1 83,932.0 44,649.0 Reserve assets3 -4,566.9 617.1 18,562.1 3,539.6 1,552.5
4. Errors and omissions -24,203.3 -49,409.9 -50,580.1 3,195.1 672.5 Overall balance of payments -4,566.9 617.1 18,562.1 3,539.6 1,552.5
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 Since 2014, direct investment includes external real estate investment of individual Macao residents through bank remittances.
3 Excluding price and exchange rate changes as well as other adjustments.
Direct investment2 Portfolio investment Financial derivatives Other investment
Table 2. Balance of Payments Sub-account Components: Current Account
106 MOP
Standard Components 2013r 2014r 2015r 2016r 2017@
Current account 165,710.4 151,053.6 91,700.9 98,670.8 133,727.1
Credit 396,801.0 410,921.5 319,599.5 308,507.3 369,676.8
Debit 231,090.6 259,867.9 227,898.6 209,836.5 235,949.7
Goods -84,249.1 -94,498.8 -92,745.9 -80,957.4 -84,364.2
11,930.6 14,271.3 15,643.1 12,356.7 13,981.2 96,179.7 108,770.2 108,388.9 93,314.1 98,345.4
Services 332,336.9 330,165.0 234,884.8 231,958.1 274,952.7
361,375.9 361,207.0 266,567.5 263,745.4 311,732.3
Transport 4,957.3 5,005.4 4,627.1 4,707.0 4,819.0
Travel 344,598.3 341,353.1 247,385.7 243,788.6 288,394.6
Financial 6,415.3 8,671.5 8,727.7 7,441.4 7,650.4
Insurance and pension 514.0 735.4 1,385.0 3,475.7 3,755.1
Others 4,891.1 5,441.7 4,442.1 4,332.7 7,113.2
29,039.0 31,042.0 31,682.8 31,787.3 36,779.7
Transport 3,501.8 4,002.2 3,816.2 3,421.7 3,565.7
Travel 9,047.4 9,692.3 9,795.8 9,778.6 10,343.9
Financial 2,796.3 2,825.3 3,518.6 4,544.0 5,113.8
Insurance and pension 1,288.3 1,354.7 1,343.2 1,286.7 1,446.1
Others 12,405.2 13,167.4 13,209.0 12,756.3 16,310.1
Primary income -64,904.8 -63,339.2 -29,287.1 -29,804.5 -32,863.2
22,832.1 34,861.6 36,795.4 31,818.0 42,177.0
Investment income 22,832.1 34,861.6 36,795.4 31,818.0 42,177.0
Direct investment income 306.7 821.8 955.0 458.2 1,479.1
Income on equity and investment fund shares 244.1 674.6 836.0 360.2 1,419.7
179.8 247.8 93.6 87.7 328.5
Reinvested earnings 64.3 426.8 742.4 272.5 1,091.2
Interest 62.5 147.2 119.0 98.0 59.4
Portfolio investment income 7,207.3 13,280.9 14,393.7 11,299.0 15,480.8 Income on equity and investment fund shares 1,872.7 5,679.0 4,547.0 1,907.6 3,698.8
Interest 5,334.6 7,602.0 9,846.7 9,391.4 11,782.0
Short-term 202.0 322.3 389.9 268.9 391.1
Long-term 5,132.6 7,279.7 9,456.8 9,122.5 11,391.0
Other investment income 14,118.1 19,417.4 20,217.5 18,573.3 22,997.1
Income on reserve assets 1,200.1 1,341.5 1,229.2 1,487.6 2,220.0
Compensation of employees n.a. n.a. n.a. n.a. n.a.
87,736.9 98,200.8 66,082.4 61,622.6 75,040.2
Investment income 86,550.6 96,461.1 64,100.4 59,463.8 72,977.0
Direct investment income 79,055.9 85,387.9 51,609.9 47,834.8 58,706.4
Income on equity and investment fund shares 78,528.0 84,710.1 50,966.9 47,172.6 57,814.6 40,460.6 60,037.4 49,316.9 26,255.2 51,164.4
Reinvested earnings 38,067.5 24,672.7 1,650.0 20,917.4 6,650.2
Interest 527.8 677.8 643.0 662.2 891.8
Portfolio investment income 373.1 758.9 964.6 771.3 2,458.4
Income on equity and investment fund shares 30.0 20.1 22.2 29.3 54.5
Interest 343.1 738.8 942.4 741.9 2,403.8
Short-term 313.5 682.4 781.7 548.4 1,886.8
Long-term 29.5 56.4 160.7 193.6 517.0
Other investment income 7,121.6 10,314.3 11,525.9 10,857.7 11,812.2
Compensation of employees 1,169.9 1,706.8 1,949.2 2,125.9 2,030.3
-17,472.5 -21,273.4 -21,150.9 -22,525.4 -23,998.2
662.4 581.5 593.5 587.1 1,786.3
n.a. n.a. n.a. n.a. n.a.
662.4 581.5 593.5 587.1 1,786.3
18,134.9 21,854.9 21,744.4 23,112.5 25,784.5 899.0 1,104.2 1,096.7 1,282.2 1,337.0 17,235.9 20,750.8 20,647.7 21,830.4 24,447.5 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 2017 Balance of Payments 2017
國際收支平衡表 二零一七年
50
Table 3. Balance of Payments Sub-account Components: Capital Account and Financial Account
106 MOP
Standard Components 2013r 2014r 2015r 2016r 2017@
Capital account -5.1 -14.9 -60.4 -545.8 -359.5
Credit 0.0 0.0 0.0 0.0 0.0
Debit 5.1 14.9 60.4 545.8 359.5
Financial account1 141,502.0 101,628.7 41,060.5 101,320.1 134,040.0
Financial non-reserve assets (net change) 146,068.9 101,011.7 22,498.4 97,780.6 132,487.5
Direct investment2 -11,785.7 -7,763.8 -4,689.2 -13,268.9 9,385.8
Net acquisition of financial assets 18,069.2 11,104.6 -1,755.8 109.9 12,846.3 Equity and investment fund shares 686.2 5,043.1 5,814.9 6,832.3 10,401.9 Equity other than reinvestment of earnings 621.9 4,616.3 5,072.5 6,559.9 9,310.6 Direct investor in direct investment enterprises 621.9 4,616.3 5,072.5 6,559.9 9,310.6 Direct investment enterprises in direct investor n.a. n.a. n.a. n.a. 0.0
Between fellow enterprises n.a. n.a. n.a. n.a. n.a.
Reinvestment of earnings 64.3 426.8 742.4 272.5 1,091.2
Debt instruments 17,383.1 6,061.5 -7,570.7 -6,722.4 2,444.4
Direct investor in direct investment enterprises 5,065.2 808.4 -6,303.2 1,023.4 -1,603.0 Direct investment enterprises in direct investor 3,057.3 475.7 -422.1 2,527.8 1,260.1
Between fellow enterprises 9,260.6 4,777.4 -845.5 -10,273.6 2,787.3
Net incurrence of liabilities 29,854.9 18,868.4 2,933.4 13,378.8 3,460.5 Equity and investment fund shares 27,812.2 15,963.3 -68.2 17,421.0 10,678.6 Equity other than reinvestment of earnings -10,255.3 -8,709.4 -1,718.2 -3,496.4 4,028.3 Direct investor in direct investment enterprises -10,255.3 -8,709.4 -1,718.3 -3,496.6 4,027.2 Direct investment enterprises in direct investor n.a. n.a. n.a. n.a. n.a.
Between fellow enterprises 0.0 n.a. 0.2 0.2 1.1
Reinvestment of earnings 38,067.5 24,672.7 1,650.0 20,917.4 6,650.2
Debt instruments 2,042.7 2,905.1 3,001.6 -4,042.2 -7,218.1
Direct investor in direct investment enterprises 2,971.9 -502.8 1,161.2 -8,848.0 -9,570.8 Direct investment enterprises in direct investor -1,195.2 16.5 -574.0 39.3 -111.2
Between fellow enterprises 266.0 3,391.4 2,414.3 4,766.6 2,464.0
Portfolio investment 99,421.0 45,238.8 97,431.3 24,359.2 80,964.1
Net acquisition of financial assets 98,021.3 54,359.6 88,363.2 38,051.6 112,634.4 Equity and investment fund shares 3,727.8 25,521.0 46,121.8 10,178.8 20,147.6
Banks -86.5 288.4 2,605.0 868.5 -955.1
Other sectors 3,814.3 25,232.6 43,516.8 9,310.4 21,102.8
Debt securities 94,293.5 28,838.6 42,241.4 27,872.8 92,486.7
Banks 11,501.3 4,892.9 28,153.0 29,902.3 59,249.3
Short-term 3,873.3 -177.4 6,807.1 -6,146.4 13,455.2
Long-term 7,628.0 5,070.4 21,345.9 36,048.7 45,794.1
Other sectors 82,792.2 23,945.6 14,088.5 -2,029.5 33,237.4
Short-term 1,338.3 381.0 -303.1 1,068.6 -137.2
Long-term 81,453.8 23,564.7 14,391.6 -3,098.1 33,374.6
Net incurrence of liabilities -1,399.8 9,120.8 -9,068.2 13,692.4 31,670.3
Equity and investment fund shares 489.3 0.0 442.7 0.0 -3.0
Banks 489.3 0.0 442.7 0.0 -3.0
Other sectors 0.0 0.0 0.0 0.0 0.0
Debt securities -1,889.0 9,120.8 -9,510.8 13,692.4 31,673.3
Banks -1,889.0 9,120.8 -9,510.8 13,692.4 31,673.3
Short-term 421.5 7,616.0 -11,056.9 14,279.0 20,329.9
Long-term -2,310.5 1,504.8 1,546.1 -586.6 11,343.4
Other sectors n.a. n.a. n.a. n.a. n.a.