2023 GDP rebounds to 80% pre-pandemic levels

Macau’s economy expanded by 80.5% year-on-year in 2023, following the gradual resumption of local economic activity and exports of services.

Government data shows GDP returned to over 80% of the level in 2019, underpinned by exports of tourism services. 

In terms of the major GDP components, private consumption expenditure and gross fixed capital formation rose 12.1% and 14.7% year-on-year respectively in 2023.

On the other hand, government final consumption expenditure dropped 6.4% owing to the conclusion of the livelihood subsidy scheme.

Exports of gaming services and other tourism services surged 343.7% and 127.9% year-on-year respectively, on account of an uplift of 394.9% in visitors; yet exports of goods fell 28.1%.

Analysed by quarter, GDP swelled 86.4% year-on-year in real terms in the fourth quarter of 2023.

Exports of gaming services and other tourism services showed respective growth of 430.8% and 130.2% year-on-year.

Macau has endured some of the world’s strictest anti-virus controls for nearly three years, and dropping border restrictions after China rolled back its “zero-Covid” strategy in January was widely expected to boost its tourism-driven economy.

After three tumultuous years, the gaming sector experienced significant upturn in 2023, where casino revenues hit MOP183.06 billion for the entire year, surpassing initial government expectations earlier last year.

As for visitor arrivals, the 2023 year closed with 28.23 million visitors, signifying a 71.6% recovery when compared to the 2019 year-end tally of 39.41 million visitors.

The 2023 overall count averages around 77,000 visits per day, setting a new reference baseline for local tourism operators and policymakers for the current year.

To further boost the sector not just with mainland tourists, a sum of MOP235 million has been reserved to attract international visitors.

Meanwhile, Fitch Ratings predicts Macau’s year on year growth to remain strong, at 15% in 2024 from 76% in 2023, off the back of sharp rebounds in gaming revenue.