Prosperity Index to remain stable amid divided determinants

The Prosperity Index is expected to range between 6.3 and 6.5 points, which is within the “stability” range, in the coming three months, the Macau Economic Association (MEA) noted in a statement yesterday.

Apart from the city’s swift recovery in the past year, the main reason for the optimism is the 75th and the 25th Anniversaries, respectively, of the establishments of the People’s Republic of China and the Macau Special Administrative Region, the group explained.

The group believes the government will mobilize with the greatest effort all resources to host a series of celebratory events, as well as attracting international tourists.

The group also cited daily average tourist arrivals during the three days of New Year holidays at 133,000 to support its optimism.

Despite the optimism, the group said that among the 13 determinants used to calculate the index, one is overheated and eight heated, which is contrary to the weak performances of the Chinese Consumer Confidence Index and the stock prices of the six casino operators.

It added that on the international level, investors’ emotions have not yet stabilized.

International tensions are also still on the rise, with armed conflicts in several areas, leading to the price hikes for various commodities and services.

Although the market expects interest rates to be lowered within the year, the pace may not be fast, based on the latest minutes from the US Federal Reserve, the group added.

The group also estimates the local Gross Domestic Product for 2023 to return to 80% of pre-pandemic levels.