Association projects 5% GDP growth this year

The Macau Economic Association (MEA) predicts an annual growth of 5% in this year’s GDP, projecting it to reach MOP437.8 billion. This represents a recovery of 90.8% of what was achieved during the same period in 2019.

According to the association, Zhuhai residents visiting Macau will continue to benefit from the new visa policy, which is expected to support steady growth in the local economy and stimulate trade across retail, dining, and other tourism sectors.

The president of the association, Joey Lao, highlighted the economic performance of the past two months, pointing out that the economy has maintained a “stable” status.

He emphasized the significant role of the integrated tourism and leisure sector, noting that it has brought vitality and energy to Macau’s economy.

Lao also cited key indicators—such as the volume of goods imported, the number of visitor arrivals, and hotel occupancy rates—that have displayed robust recovery, suggesting the region’s economy is on an upward trajectory.

Despite these positive signs, Lao expressed concerns about inflationary pressures stemming from “the abundance of liquidity” available for economic activities. He addressed issues regarding domestic demand, noting that confidence indices for the restaurant and retail sectors are showing “no clear growth dynamics.”

Meanwhile, the stock prices of the six major concessionaires in Macau, along with the Chinese consumer confidence index, remain low.

This situation highlights hesitancy among investors and consumers, reflecting ongoing uncertainties and pressures from the global economic environment.

Lao’s observations paint a picture of cautious optimism, tempered by existing challenges that could impact Macau’s economic future.

Furthermore, the potential for interest rate cuts in foreign markets adds another layer of macroeconomic uncertainty.

The association’s analysis indicates that forecasting the pace of interest rate reductions is “challenging” due to the current global geopolitical landscape, the upcoming inauguration of US President Donald Trump next week and the associated rise in customs duties, fluctuations in energy prices, and overall market instability.

Despite these challenges, Joey Lao noted that China is set to adopt a “more proactive” fiscal policy and an “adequately flexible” monetary approach this year. These strategies are expected to result in interest rate reductions in response to external uncertainties and to stabilize economic growth.

Lao assured that these measures would have a “positive effect” on the development of the city’s economy. Staff Reporter