Net service exports drive first-quarter economic growth

As the city’s gross domestic product rose 7.1% year on year, net service exports contributed 11 percentage points to Macau’s first-quarter economic growth, according to the Monetary Authority of Macao’s latest Monetary and Financial Stability Review.

The report said Macau’s recovery remained “well on track,” driven by stronger tourism demand and higher service exports. It noted that real GDP expanded 4.7% in 2025 and reached 90.3% of its pre-pandemic level in the first quarter of 2026, compared with the same period in 2019.

The monetary regulator said the tourism and gaming sectors continued to anchor growth. Gross gaming revenue (GGR) rose 14.2% in the first quarter, with mass-market baccarat revenue up 7.2% and VIP baccarat revenue up 35.4%.

Visitor arrivals remained above pre-pandemic levels, the AMCM noted.

In the first five months of 2026, Macau received 18.1 million visitors, up 11.1% from a year earlier and 5.6% above the comparable 2019 period.

Visitor spending on non-gaming tourism services rose 14.7% in the first quarter, retail sales rebounded 23.0%, and average hotel occupancy reached 91.4% in the first five months of the year.

Service exports increased 12.8% over the same period, while net service exports rose 15.7% after accounting for imports. “Net service exports sustained solid growth momentum,” the AMCM said, adding that they were boosted by the continued influx of visitors to the city.

Broader signs of economic stability

Savings rates climbed to 59.2% in the first quarter, well above the global average of 26.1%, which the AMCM said reflected “strong resilience and liquidity buffers” amid international uncertainty.

The AMCM also highlighted a stable labor market, stronger public finances supported by higher gaming tax revenue, and the government’s debt-free position as signs of economic resilience.

“Overall, Macau’s growth prospects are envisaged to remain broadly optimistic in 2026,” the report said, adding that “solid fundamentals” would continue to anchor the city’s economy despite global headwinds.