The uneven recovery of the city’s economy remains a problem, the Macau Economic Association (MEA) has noted.
The group said that although tourism districts, hotels and resorts saw an influx of customers resulting in packed shops and restaurants after travel resumed earlier this year, more traditional residential areas are not benefitting to the same extent.
The group said community businesses are facing challenges because locals are shopping across the border and tourists are not visiting these districts.
Moreover, tourists’ consumption habits have changed. They are now seeking better products or services rather than merely looking at price tags.
The group has suggested local businesses acknowledge a shift in the market, and make appropriate changes to survive.
As the publisher of the monthly Prosperity Index, the group has forecast the Index will be stable for the next three months. With the October and November indices confirmed at 6.3 and 6.0, the group expects indices to range from 6.2 to 6.3 over the next three months.
The group’s forecast for next year’s economy is “cold outside, warm inside,” meaning global prospects will still be unstable with political, economic and armed wars continuing.
It cited expectations by international organizations that economic recovery is forecast to slow. High interest rates are another obstacle to full recovery, the group added.
Nonetheless, it added, the “double celebrations” – China’s 75th Anniversary and Macau SAR’s 25th Anniversary – as well as 2024 being the first year of the government’s directive on economic diversification, will prompt the government to invest more in energizing the economy. As such, it believes that the city’s economy in 2024 will be even better than this year.
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