Macau’s gross domestic product (GDP) increased by 4.7 percent year-on-year in real terms for full-year 2018, said on Thursday the city’s Statistics and Census Service. It was the second consecutive annual rise, boosted by revenue growth in the city’s gaming industry.
The statistics bureau said the city’s economic growth in 2018 was helped by increases in exports of services and in private consumption. Gaming services in Macau are included in exports when calculating the city’s GDP. That is in order to reflect spending by tourists in the city’s casinos. In 2018, exports of gaming services went up by 10.3 percent year-on-year in real terms.
In 2018, the city’s GDP amounted to MOP440.3 billion (US$54.46 billion), said the statistics bureau.
Macau’s GDP performance trends in recent years have broadly coincided with casino gross gaming revenue (GGR) trends in the city, highlighting the importance of the gaming sector to the local economy. The gaming business was negatively affected by a slump in GGR that began in June 2014 and extended for two years.
Annual casino GGR in Macau posted its first increase in 2017, after three consecutive years of annual decline. In 2018, Macau’s accumulated casino GGR grew by 14.0 percent compared to the tally for 2017, according to official data.
Macau’s GDP increased by 9.1 percent year-on-year in real terms in 2017, marking the first such annual rise since 2013.
In the fourth quarter of 2018, Macau’s economy expanded by 2.1 percent year-on-year in real terms, showed Thursday’s data.
The International Monetary Fund (IMF) expects Macau’s economy to grow by 5.3 percent this year “and to remain solid over the medium term at about 5 percent.” The forecast was included in IMF’s latest report on Macau, published on Monday.
“The main driver of medium-term growth is tourism, with mass gaming and non-gaming tourism further expanding, but more subdued VIP gaming growth, in line with authorities’ diversification efforts towards more stable sources of growth,” said the IMF.
Oct 18, 2019The Macau government has collected nearly MOP85.66 billion (US$10.6 billion) in tax revenue from the city’s gaming industry in the first nine months of this year. The tax revenue collected from the...
Oct 18, 2019
”The [Macau] junket sector ... feels that more stringent requirements can enhance the reputation for the sector as a whole, so they [the junkets] are willing to comply with it in order for the sector to sustain a healthy development for the long term”
Paulo Martins Chan
Director of Macau's Gaming Inspection and Coordination Bureau