Major events to support Q4 economic recovery

Macau’s economy is expected to accelerate its recovery in the fourth quarter, driven by a combination of tourism, major events, and domestic consumption incentives, according to local experts.

The upcoming Golden Week holiday marks the start of the city’s peak travel season, complemented by high-profile events including the Macau Grand Prix, the National Games, and seasonal festivals.

Analysts note that a rebound in Mainland China and Hong Kong stock markets this year has created a wealth effect among key visitor groups, boosting both travel spending and retail consumption.

“Mainland and Hong Kong tourists make up more than 90% of arrivals,” said Samuel Tong, president of the Macau Institute of Management, noting how strong equities markets have encouraged travel and discretionary spending, as cited in a Macao Daily report.

Domestic initiatives, such as the government’s extended consumption rewards program, aim to stimulate local spending and support small and medium-sized enterprises, particularly in residential districts.

However, experts caution that Macau still faces a lack of large-scale investment projects, limiting longer-term growth potential.

Authorities are urged to expedite development of integrated tourism-culture zones and technology parks to attract substantial capital and diversify the city’s economic base.

Inflation slows to 0.25% in August

The city’s annual inflation rate eased to 0.25% in August 2025, marking the 14th consecutive month of slowing consumer price growth, according to the Statistics and Census Service (DSEC).

Breaking down by income brackets, DSEC reported that households in Tier A – accounting for roughly 50% of families with monthly expenses between MOP11,000 and MOP35,999 – saw prices rise 0.21%, while Tier B households, representing 30% of families spending MOP36,000 – MOP71,999, experienced a 0.27% increase.

Sector-specific trends were uneven, with prices falling in “transport” (-2.09%) and “information and communication” (-2.57%), while increases were recorded in “miscellaneous goods and services” (+2.20%), “leisure and culture” (+1.38%), and “health” (+1.02%).

On a monthly basis, the consumer price index edged up 0.11%, led by rising costs in food and beverages (+0.05%) and transport (+0.87%), while clothing and footwear (-0.47%) and miscellaneous services (-0.11%) declined.

Overall, the CPI for the first eight months of 2025 increased 0.19% year-on-year, with inflationary pressures concentrated in housing, food, and transport, the three largest components of Macau’s consumer basket, weighting 34.47%, 29.47%, and 8.33%, respectively. times reporter