Economy remains stable despite external uncertainties: association

The local economy continued to show “resilience and stability” in March and April despite ongoing external uncertainties and shifting consumer behavior, according to the latest economic climate index released by the Macau Economic Association.

The association said Macau’s overall economic climate remained within the “stable” range, with the index recording 6.4 points in March and 6.3 points in April.

Gross gaming revenue (GGR) reached MOP22.7 billion in March and MOP19.9 billion in April, with average daily GGR standing at MOP729 million and MOP663 million respectively. Although the figures represented a slight decline, they remained at relatively high levels, the association noted.

Driven by continued growth in visitor arrivals, tourism-related sectors such as leisure and hotel accommodation remained active, while imports of goods also stayed at high levels.

“These indicators show that under an external environment marked by uncertainty and complexity, Macau’s macroeconomy still possesses a certain degree of resilience and stability,” the association said.

However, the group warned that economic performance remained uneven across sectors. Indicators related to domestic demand and consumer confidence continued to appear weak amid changing consumption habits and external pressures.

The association noted that the loan-to-deposit ratio of local residents at banks had fallen below 45%, reflecting ample liquidity but also cautious borrowing sentiment and weak investment appetite. Meanwhile, the residential property price index remained below 190 points, suggesting the real estate market was still undergoing adjustment.

Looking ahead, the association expects Macau’s economy to maintain a “stable and moderately positive” trend between May and July, supported by tourism, concerts, sporting events, exhibitions and rising pre-summer travel demand.

The economic climate index is forecast to remain between 6.4 and 6.6 points over the next three months.

The association also urged continued attention to external risks and called for efforts to accelerate economic diversification and industrial upgrading, warning that Macau’s economy remains relatively concentrated and vulnerable to global uncertainties. LV