Macau's well-to-do economy has remained one of the most open in the world since its reversion to China in 1999. The territory's net exports of goods and services account for roughly 41% of GDP with tourism and apparel exports as the mainstays. Although the territory was hit hard by the 1998 Asian financial crisis and the global downturn in 2001, its economy grew 9.5% in 2002. A rapid rise in the number of mainland visitors because of China's easing of restrictions on travel drove the recovery. The budget also returned to surplus in 2002 because of the surge in visitors from China and a hike in taxes on gambling profits, which generated about 70% of government revenue. The liberalization of Macao's gambling monopoly contributes to GDPgrowth, as the three companies awarded gambling licenses have pledged to invest $2.2 Billion in the territory. Much of Macau's textile industry may move to the mainland as the Multi-Fiber Agreement is phased out. The territory may have to rely more on gambling and trade-related services to generate growth. The government estimated GDP growth at 4% in 2003 with the drop in large measure due to concerns over the Severe Acute Respiratory Syndrome (SARS), but private sector analysts think the figure may have been higher because of the continuing boom in tourism.
History
The colony's name is derived from the Ma Kwok temple, built there in the 14th cent. Macao was the oldest permanent European settlement in East Asia. It was a parched and desolate spot when the Portuguese established a trading post there in 1557. For nearly 300 years the Portuguese paid China an annual tribute for the use of the peninsula, but in 1849 Portugal proclaimed it a free port; this was confirmed by China in the Protocol of Lisbon in 1887. With the gradual silting up of its harbor and the rise (19th cent.) of Hong Kong, Macao lost its preeminent position and became identified to a large extent with smuggling and gambling interests.
After 1949 the population was swelled by an influx of Chinese refugees from the mainland. In the winter of 1966–67, Communist-organized riots shook the province, resulting in a capitulation by the Portuguese to Chinese demands to bar entry to refugees and prohibit anti-Communist activities. In 1974, Macao was established as a Chinese territory under Portuguese administration; the Chinese refused to accept the return of the territory at the time. A real-estate boom in the early 1990s had largely waned by the end of the decade. Under the terms of a 1987 agreement, Macao became a special administrative region under Chinese sovereignty in Dec., 1999. Macao has been promised 50 years of noninterference in its economic and social systems.
Postal History
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