Top-Rated Debt Collection Agency in Macao

The economic risk in Macao

Our conclusion based on the economic risk factors, is that the economic risk in Macao is medium (3 out of 6). An economic risk of 3 out of 6 is low in Asia.

GDP and economic growth are critical drivers for economic risk.
The GDP of Macao is 29,91 bn. USD (2021), growing by 17,99% per year.

In terms of the size of its economy, Macao ranks #96 out of 183 countries and has a medium-sized economy.

In terms of growth rate, it is ranked #4 out of 183 countries and is therefore considered a fast-growing economy.

GDP per capita is 45422 USD, ranking Macao number #23 out of 183 countries. The result of this is purchasing power of citizens in Macao is high compared to the rest of the world.

You can see a more detailed picture of GDP and economic growth in Macao in the table below:

Another critical driver for the economic risk score is the inflation rate and the interest rates. You can see a more detailed overview of monetary data points in Macao in the table below:

Businesses has an interest rate which is 5,26%.

The business environment risk in Macao

Our analysis shows that the business environment risk in Macao is low (2 out of 6), which is a low risk score in Asia.

Economic freedom and rights determine the business environment risk in a country. You can see the critical facts for Macao in the table below:

As you can see above, the property rights index is 34 in Macao, which is considered low in Asia.

The political risk in Macao

The political risk in Macao is low, with a score of 2/6. This is a low political risk score in Asia.

The governance and political stability indicators are vital drivers for political risk. An overview of Macao can be seen in the graphs below:

The rule of law index analyses to which extent agents have confidence in and abide by the rules of society, in particular the quality of contract enforcement, property rights, the quality of the courts, and the police's ability to enforce court orders.

When transacting business in a country, the rule of law index is critical as it describes your ability to enforce commercial contracts.

In Macao, the rule of law index is at 0,81 points, with the score going from -2.5 (weak) to 2.5 (strong). Macao has, therefore, a very high rule of law index, which means you have a very good chance of enforcing your contracts. If your individual customers have good creditworthiness, you should therefore feel relatively safe when providing credit.

The commercial risk in Macao

In Macao, the commercial risk score is 3/4, which in our model is a medium score. This medium commercial risk score is relatively high compared to the average in Asia.

The commercial risk is impacted by a country's international trade relationships. You can see some of the key facts for Macao in the table below:

Macao has a foreign exchange reserve of 26.66 bn. USD.

Macao has a positive trade balance of 12,42% of GDP. The implications of this is that Macao imports fewer goods and services than the country exports.

The annual growth of exports of goods and services has been growing 69,88% annually - now 88,3% of GDP. Import of goods and services represents 75,88% of the GDP in Macao.

The financing risk in Macao

We have calculated the financing risk to be 1/4, which equals a very low risk. A very low financing risk score is low for countries in Asia.

The country's banking system, efficiency, and stability influence the financing risk. Additional facts and info can be found for Macao in the table below:

The very low financing risk for creditors also impacts the medium interest rate in the private sector of 5,26%.