City’s Prosperity Index remains at ‘Stability’ level
With a projected Prosperity Index at 5.5 for June 2023, Macau’s economy should retain robust synergy and achieve better results during the summer holiday, the Macau Economic Association (MEA) announced yesterday.
Each month, the group studies local economic data to formulate the Prosperity Index.
The Index for April is 5.3, the group revealed. The projected Indices for May to August are 5.6, 5.5, 5.8 and 5.8 for each respective month in the period.
As the group explained, its optimism is brought about by continuous reinvigoration of the city’s economy. It highlighted that data from the first five months of the year has surpassed expectations, with nearly MOP65 in billion gross gambling revenue (GGR), equating to half the amount expected by the government.
The group also commended the government on policy implementations, in addition to noting that local resorts had escalated their efforts by organizing an increasing number of performances and sporting events, which would accelerate the city’s diversification and enhance its attractiveness to leisure seekers and global tourists.
Moreover, it pointed out that in the past two months, the city has seen five consecutive months of year-over-year increase in M2 currency supply, reflecting investors’ growing confidence in Macau.
Additionally, escalating counts of visitor arrivals have pulled up hotel occupancy rates to 90% of the 2019 level, which is the highest rate since 2020. The unemployment rate dropping to 2.8% is also good news.
Despite all the good news, the group warns of unclear factors, such as pressure from projected inflation and tightening currency policies. The American dollar’s soaring interest rate is a heavy punch on both emerging markets and developed economies, the group added.
It forecasts that there will be another round of interest hikes in the second half of the year, considering intense inflation in America, and that the high rate will remain for at least another year. This will burden capitalization in Macau as the interest difference between the two currencies may further expand. The group therefore suggests caution. AL
