Macau to sustain ‘heavier pressure’ in economy in 2019

Macau is slated to face economic hurdles in 2019 as the U.S.-China trade tension continues, a local scholar remarked.

Although some analysts noted that the U.S.-China trade war was unlikely to affect the city, particularly local casinos, some warned thatMacau should strengthen its study on the city’s economic trend.

Director of the Macau Economic Association, Joey Lao, noted that the possible decline next year could affect the jobs of migrant workers.

Speaking to the press on the sidelines of an economic forum organized by the association, Lao said, “The labor market, including the migrant workers, would certainly be affected,” as cited in a TDM report.

“However, if the local job market can be stabilized, there would not be a significant impact,” he added, noting that the trade war could be a factor affecting the city’s economy.

He also noted that the trend in 2019 would “sustain a heavier pressure.”

“I would describe it as an economic typhoon. Signal one is now being hoisted.”

In September, Deutsche bank cut its 2019 outlook by more than half, to 4 percent growth from 11 percent previously, citing concerns about the VIP segment and saying Macau is at the start of a downward earnings revision cycle, Bloomberg previously reported.

Factors include the decline in the yuan, along with the ongoing trade war.

Meanwhile, Director of the Economic Bureau Tai Kin Ip said that they are closely monitoring market changes.

“We pay close attention to the market changes while actively implementing the five-year development plan of the SAR. We will use the various supportive measures given by the country efficiently,” he said.

Zhang Jianhua, from the Economic Affairs Department of the Liaison Office called for stronger research on the city’s economic situation.

“The international economic trend is complicated. The local gross gaming revenue slightly dropped and private large scale investments significantly declined,” she said, adding that, “It is necessary for us to further strengthen the study of Macau’s economic trend.”