MEA: ‘Stable’ economic index as visitor surge fuels jobs

The increase in visitor arrivals has led to continued improvements in indicators such as local hotel occupancy and the employment market, reports the Macau Economic Association (MEA).

The MEA has released the latest trend of the Macau Economic Prosperity Index, indicating a stable economic outlook for the city.

According to the report, the July and August economic indicators remained “stable,” with the economic outlook index reaching 6.4 and 6.6 respectively, slightly above the upper edge of the “stable” rating.

This was driven by summer vacation tourism, which saw over 6 million visitor arrivals in the two-month period, with average daily visitor arrivals of 97,000 and 118,000, respectively, and average daily gross gaming revenues of MOP600 million and MOP640 million.

Macau’s money supply M2 also rose 4.3% year-on-year to a record high of MOP764.3 billion in July, further strengthening the city’s economic resilience.

However, the report noted China’s Consumer Confidence Index and the share prices of the six major tourism and gaming operators remain in the “downturn” category, reflecting the uncertainties in Macau’s external environment.

Despite the challenges, the MEA is optimistic about the city’s economic outlook, particularly in the fourth quarter.

“The upcoming National Day Golden Week in October, coupled with the intensive year-end celebrations, will contribute to the improvement of the local business environment, supporting the overall economic sentiment index to remain at a ‘stable’ level between 6.4 and 6.5 points from September to November,” the report said.

Furthermore, the report suggested the imminent interest rate cuts by global central banks, including the possibility of a 0.25% rate cut by the US Federal Reserve next week, could benefit Macau’s market conditions and stimulate the real economy.

“With the US economic data starting to show signs of weakness and inflation gradually declining, the market generally expects the Fed to start the pace of interest rate cuts as scheduled at next week’s rate meeting,” the report said.

Overall, the MEA’s assessment indicates Macau’s economic outlook remains stable, with positive factors expected to drive the city’s performance in the fourth quarter. Victoria Chan