Economy to recover 19% year-on-year in Q1: association

The Macau Economic Association has announced its predictions for Macau’s first-quarter economic performance, indicating a promising recovery for the region. According to the association’s forecast, the gross domestic product (GDP) for the first quarter is expected to reach approximately MOP92 billion, reflecting a significant year-on-year increase of approximately 19%.

This surge in GDP signifies a recovery of approximately 82.8% compared to the same period in 2019.

In addition to the positive GDP growth, the gambling industry in Macau has also exhibited encouraging progress. The first-quarter gambling revenue totaled an impressive MOP57.3 billion, successfully achieving 26.5% of the full-year target of MOP216 billion.

The association has deemed this progress as being in line with expectations.

However, the report warned that challenges remain. While tourists have been returning to Macau in large numbers, local consumption has declined as some small businesses closed under economic pressures. High interest rates have also burdened companies with capital turnover and debt repayment, pushing up non-performing loan ratios in the banking system.

The association pointed to an unbalanced recovery so far with strong tourism but sluggish domestic spending.

It said external conditions also pose risks as inflation rages in the U.S. and global economic uncertainty grows. Looking ahead, the group forecast Macau’s economy in the current quarter could fluctuate between “stable” and “slightly overheated” based on present trends.

Nevertheless, the economic asociation remains optimistic about Macau’s economic prospects. They affirm that the country’s active promotion of new productive forces will benefit Macau’s economy. Based on the current development trajectory, it is expected that the economic boom in the second quarter will fluctuate between “stable” and slightly “overheated.”

Staff Reporter