Economic association predicts recovery to slow amid new cases

Following the latest round of disease control and prevention measures across the city, the Macau Economic Association predicts that the economic revival will be slower than in previous stages.
According to various sources of published economic data, the economic prosperity index of Macau in June and July was approximately 3.3-3.4 points, down from 3.7 points in May due to the repeated impacts of the pandemic. This score is classified as being “under-satisfactory” in the indicator system.
Taking all factors into consideration, the research team downgraded the forecast value of the Macau Prosperity Index for the August-October period to the “under-satisfactory” level of 3.1-3.4 points.
The current round of disease control and prevention measures was implemented after the city saw four new Covid-19 infections. The measures include tightened border controls, shorter polymerase chain reaction (PCR) test result validity periods for border crossings, as well as the closure of leisure venues such as cinemas, theaters and libraries.
As well as causing a plunge in the number of visitor arrivals to the city, the measures also put a stop to residents’ movements, the association pointed out. The closures have been challenging for businesses as they lack income during this period, but are still required to pay rent.
As such, the association predicts that the upcoming prosperity index of the city will drop compared with the previous indices released this year.
The association sees the latest four cases as more impactful on the city’s prosperity than the previous imported cases and the earlier outbreak in Guangdong.
Local small- and medium-sized enterprises are going to suffer further from the unclear and fluctuating economic performance and outlook, the association added. The good news is that the city-wide PCR test recorded an all-negative result, suggesting that a community outbreak is, for the time being, absent. AL