Though a small economy, Macao pursues an open economic policy. It boasts one of
the lowest tax regimes in the Asia Pacific region and sound financial stability. As a
free port and a separate tariff zone, which has no foreign exchange controls, Macao is an active player in the regional economy and a vital link between the mainland
Chinese and global markets.

The Macao Special Administrative Region (MSAR) has maintained rapid growth
since its establishment, with its economy growing by an average of 14 percent in real
terms annually between 2000 and 2008. This is a turnaround from consecutive
negative growth in the four years to 1999. Macao’s gross domestic product (GDP)
stood at 141.17 billion patacas in 2008 at constant prices of 2002, which is 3.1 times
the 1999 figure. This translates into US$39,000 of GDP per capita in 2008 – one of
the highest in Asia. As of the end of 2008, the MSAR’s foreign reserves had reached
127.2 billion patacas.

Macao’s small-scale economy is characterised by its openness and flexibility and
enjoys a unique position in the regional economy. It used to be largely dependent on
export trade, but the services sector is playing an increasingly bigger role as the
processing industry tries to adapt itself to changing times.

Macao is one of two international free ports in China. Goods, capital, foreign exchange and people flow freely in and out of Macao. Since the establishment of the MSAR Government, economic policy in Macao has focused primarily on protecting and streamlining its free market economic system. It has cultivated a world-recognised, free and open, fair and orderly market environment.

In April 2007, the World Trade Organization (WTO) released a trade policy review of
Macao, a study that takes place every six years. The report recognised Macao’s
economic achievements over the past six years and its optimistic prospects for future
development, and reaffirmed the openness of its economy. This is the MSAR’s second WTO trade policy review since the previous one in 2001.

According to the 2009 Index of Economic Freedom released in January by the
US-based Heritage Foundation, Macao was ranked sixth in the Asia Pacific region for
the first time and ranked number 21 among 179 economies globally.

Capitalising on its unique advantages, the MSAR strives to strengthen economic cooperation and develop into an international trade services platform for the region. It
aims to give full play to its longstanding ties with the Asia Pacific region, the European Union, Romance language-speaking countries and especially Portuguese-speaking countries, thereby cementing its role as the bridge between mainland China and these economies.