Rise in Q2 Prosperity Index expected

The second quarter of the year will see a slight rise in the Prosperity Index, the Macau Economic Association has forecast.

Noting the economy is usually weaker after a major festival, such as the Lunar New Year, the group believes the economy will soon regain vitality, given this year celebrates “double anniversaries” – the silver and diamond jubilees of the Macau Special Administrative Region and the People’s Republic of China, respectively.

The group believes the government will organize celebratory events that will attract more tourists and that the return of normalcy and Hengqin’s cooperation zone will also be positive factors.

These factors, along with the IMF’s growth forecast of 13.9% for the city this year, suggest the Prosperity Index for the coming quarter should range between 6.5 and 6.6 points, according to the group.

The group raised concerns Macau residents’ more frequent external travel will cause further unequal revitalization between different districts in Macau.

It added that community expenditures in Macau will likely continue to fall despite the policy of greater integration among people from mainland China, Macau and Hong Kong.

The group has suggested local business operators to seek change.

With “better than expected economic performances early this year,” according to the group, the indices for January and February have been confirmed at 6.5 points. AL

Categories Macau