Preliminary GDP figures point to recovery in Q2

Macau’s economy has shown signs of recovery in 2025, returning to positive growth in the second quarter (Q2).

According to a release by the Statistics and Census Service, the local Gross Domestic Product (GDP) increased 5.1% year over year, reaching MOP100.38 billion.

This figure represents 88.8% of the total output from the same period in 2019.

In the first half of 2025, preliminary GDP growth was 1.8% year-on-year, totaling MOP200.14 billion, 87% of the result obtained pre-pandemic.

The recovery has been primarily driven by increased service exports, which rose 5.8%.

This growth was supported by nearly a 20% rise in visitor arrivals, with visitor numbers reaching a daily figure of 109,000 in May.

Concurrently, the hotel occupancy rate increased to 87.8%, reflecting a 4.5% rise from the previous year.

Domestic demand with a small contribute

Domestic demand also contributed to the economy, although at a smaller scale, with government final consumption expenditure growing by 1.1% while private consumption expenditure only slightly increased (+0.3%).

On the other hand, gross fixed capital formation declined by 3.6%, mainly due to a decrease in private construction projects.

Additionally, gross gaming revenue increased, with daily averages rising from MOP684 million in May to MOP702 million in June, exceeding analyst forecasts.

This growth has been linked to a schedule of concerts and entertainment events and a recovery in gaming revenues across the city’s concessionaires.

Despite a record money supply of MOP815.7 billion, which indicates ample liquidity, the distribution of these financial resources has not been uniform across the economy.

On the same topic, the Macau Economic Association forecasted continued economic stability in Q2, predicting a GDP between MOP105 billion and MOP110 billion, suggesting a real growth rate of around 7%.

The economic prosperity index is anticipated to stabilize between 5.8 and 5.9 in Q3, reflecting ongoing recovery. Times Reporter