Macao SAR China profile

Demography and Health

Macao SAR China maintains a small but affluent population, totaling about 687,000 people in 2024, concentrated within a compact urban footprint that underpins a dense service economy. The territory enjoys very high life expectancy, at 83.2 years at birth in 2023, reflecting strong health outcomes and widespread access to healthcare. Fertility is low, with a crude birth rate of 5.5 per 1,000 people in 2023, while the crude death rate stands at 4.4 per 1,000 in the same year, signaling slow natural population growth. Net migration registered a positive 1,620 in 2024, suggesting that cross-border movements help offset aging and small native birth cohorts, a pattern common in high-income city-regions that rely on international labor markets. The combination of a high life expectancy and low birth rate points to an aging demographic profile, which, without offsetting migration or policy intervention, could increasingly burden public services and healthcare systems over time. Nutritional wellbeing shows room for improvement in pockets of the population, with a prevalence of undernourishment at 10.7% in 2022, indicating that a segment remains vulnerable despite overall affluence. The high level of internet adoption and robust human capital, while not directly captured in these numbers, is a backdrop for ongoing health and social services modernization, including digital health initiatives that many high-income economies pursue. In sum, Macao’s demography is characterized by longevity and aging, low natural growth, selective migration inflows, and areas of vulnerability that warrant targeted social and health policy responses to sustain inclusive outcomes.

Economy

Macau’s economy stands out for its extraordinary per-capita income and a fundamentally service-based structure. In 2024, GDP per capita at current US$ is 73,047, while GDP per capita at PPP is a robust 128,268, underscoring the population’s high standard of living and the strong competitiveness of the local economy. The export pattern is dominated by services, with exports of goods and services constituting 89.8% of GDP in 2024, signaling a highly open and trade-facing economy where tourism, gaming, hospitality, and related services are central drivers. The corresponding import intensity is more moderate, with imports of goods and services at 45.4% of GDP in 2024, reflecting a mature economy that can rely on external suppliers for a wide range of goods, while keeping a substantial external surplus on the current account. Inflation remains subdued at 0.476% in 2023, indicating price stability that supports consumer purchasing power and business planning. The current account balance is extraordinarily favorable, at 31.4% of GDP in 2023, highlighting large foreign exchange earnings from the services sector and a conservative external position that can finance future investment and social programs. Despite high incomes, Macao’s investment profile shows modestly scaled inward flows, with foreign direct investment net inflows at 3.59% of GDP in 2023 and a relatively low level of domestic high-technology manufacturing activity (high-technology exports at 0 in 2023), suggesting a reliance on external capital and a continued emphasis on services over manufacturing. Research and development expenditure remains modest at 0.264% of GDP in 2023, indicating that the knowledge economy is still comparatively early in its maturation relative to some peers, despite a high-income status. Overall, the economy blends record-level income with a service-dominated structure, heavy reliance on tourism proceeds, controlled inflation, and a favorable external balance that provides room for strategic reinvestment and diversification.

Trade and Investment

Trade and investment dynamics in Macao reflect a capital- and services-led economy with strong openness. The territory’s export orientation is exceptionally high, with exports of goods and services accounting for 89.8% of GDP in 2024, underscoring a heavy reliance on external demand for services such as tourism, gaming, and related activities. Imports of goods and services stand at 45.4% of GDP in 2024, indicating substantial consumption and investment capacity within a relatively self-contained economic system that still participates actively in global trade. Macao also records a robust current account balance at 31.4% of GDP in 2023, signaling a substantial surplus that supports external resilience and the capacity to fund social and development programs or structural investment. Foreign direct investment, net inflows, are 3.59% of GDP in 2023, showing ongoing interest from international capital, albeit at a level that reflects the city’s provisioning as a platform for services rather than a manufacturing hub. The economy’s emphasis on services is reinforced by a negligible share of high-technology exports (0) in 2023, alongside a modest research and development footprint (0.264% of GDP in 2023) and a sparse patent activity (2 resident patent applications in 2021), pointing to a potential area for future diversification toward knowledge- and technology-intensive activities. The combination of vast services exports, controlled inflation, and a solid external position provides Macao with a solid platform to pursue strategic investment in innovation, infrastructure, and human capital to broaden its economic base beyond traditional services and strengthen resilience to sector-specific shocks.

Governance and Institutions

Macau displays governance indicators that reflect credible and relatively strong institutional quality. In 2023, regulatory quality stands out at 1.79 with a rank of 6, suggesting a strong capacity to formulate and implement effective policies and regulatory frameworks. Control of corruption records 0.849 (rank 36), while government effectiveness is 1.09 (rank 33), indicating generally sound public administration and lower levels of corruption relative to many peers. Political stability and absence of violence or terrorism is reported at 1.07 (rank 20), illustrating a stable political environment, and the Rule of Law score is 0.783 (rank 44), reflecting a credible legal framework, albeit with room for strengthening judicial outcomes. Taken together, these indicators suggest that Macao’s governance environment is conducive to business and investment, with a transparent regulatory regime, relatively efficient public services, and manageable risk of political disruption. The governance profile supports investor confidence and the implementation of policy measures designed to sustain growth, social stability, and inclusive development, while continuing to address any residual weaknesses in rule of law and institutional independence.

Infrastructure and Technology

Macau exhibits strong digital and infrastructural foundations, befitting its status as a high-income, service-oriented economy. Individuals using the Internet reach 89.2% of the population in 2023, indicating extensive digital connectivity that supports tourism, services, and increasingly digital governance and commerce. Renewable energy consumption accounts for 11.0% of total final energy consumption in 2022, signaling progress toward cleaner energy sources, though the share remains below ambitious targets and the territory’s needs for energy security. Research and development expenditure is 0.264% of GDP in 2023, a relatively modest allocation given the high-income status, while patent applications from residents are 2 in 2021, and high-technology exports are 0 in 2023, highlighting a technology profile that remains light on domestically produced advanced products and a reliance on external technology and knowledge inputs. This combination suggests substantial room to elevate innovation intensity, domestic R&D investment, and patent activity, plus potential to broaden the technology pipeline through public-private partnerships, talent development, and incentives for startup ecosystems. Macao’s infrastructure and digital environment, however, appear capable of supporting a progressively digital economy, with high internet penetration and a favorable governance backdrop that can underpin strategic investments in smart-city initiatives, data-driven services, and climate-smart infrastructure as the economy evolves beyond its traditional reliance on tourism and gaming.

Environment and Sustainability

Environmental indicators for Macao point to a high-income territory that faces sustainability challenges yet has room for progress. Total greenhouse gas emissions per capita are 4.59 t CO2e in 2023, reflecting a carbon-intensive footprint consistent with a dense, travel- and services-led economy. Renewable energy constitutes 11% of total final energy consumption in 2022, indicating ongoing transition efforts but also a reliance on non-renewable sources to meet energy demand. The prevalence of undernourishment is 10.7% of the population in 2022, signaling pockets of food insecurity within an otherwise wealthy economy, which warrants targeted social and nutritional policies. The combination of a high standard of living, energy transition efforts, and environmental pressures from a high-density urban environment suggests that Macao faces common sustainability trade-offs: maintaining economic vitality and livability while accelerating decarbonization, improving energy efficiency, and ensuring inclusive access to nutritious food and environmental services. The governance and infrastructural capacity evidenced in the data could enable strategic planning for climate resilience, renewable integration, and green finance to bolster Macao’s long-term environmental sustainability while preserving its economic strength.