Economic association raise business climate index for Q2

The Macau Economic Association has recently increased its estimate for the second quarter’s Business Climate Index to between 3.4 and 3.5, hinting at a further recovery in the second half of the year, the association announced.
The index for February was 3.3, while the estimate for March was 3.4. Both indices fell into the unsatisfactory category. Other factors, such as the stock prices of the six gambling concessionaires, and the M2 money supply and employment-related benchmarks showed better performances. For example, the daily gross gambling revenues in the first three months of 2021 were between MOP259 million and MOP268 million, with a rising trajectory.
According to the association, the positive estimate was based on the fact that conditions have eased in mainland China, with more Mainland residents returning to Macau for leisure.
In addition, the government has also unveiled the scheme of mobile spendings and discounts, which grants each registered local resident MOP5,000 for spending and MOP3,000 for discounts of spending.
If passed by the parliament, the scheme will bring an extra boost to the city’s recovery, the association predicts. Conditions will be even better if border restrictions between Macau and Hong Kong were to be lifted in the second half of the year.
However, the association added that prosperity in the second half of the year will also depend on government policies.
Moreover, the association has also accounted for the global economic climate in calculating the index. AL