Macau 1H economic output recovers to 71pct of 1H 2019

Aug 25, 2023 Newsdesk Latest News, Macau, Top of the deck  

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Macau’s gross domestic product (GDP) rose by 117.5 percent year-on-year in real terms in the second quarter this year, according to data from the city’s Statistics and Census Service in a Friday update.

The second-quarter GDP growth was “driven” by  Macau’s “thriving tourism and gaming sectors”, said the statistics bureau in commentary on the figures.

The city’s GDP grew by 71.5 percent year-on-year in real terms in the six months to June 30. That meant the overall economic output of Macau recovered to 71.0 percent of the level seen in the first half 2019, said the government. That was a reference to the last trading year before the onset of the Covid-19 pandemic in early 2020.

The latest data showed exports of services in the three months to June 30 rose by 211.9 percent year-on-year. In that economic segment, exports of gaming services and of other tourism services surged by 463.6 percent and 157.5 percent year-on-year respectively, supported by the rebound in visitors to Macau seen in the reporting quarter.

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.

Macau’s gross fixed capital formation – another major expenditure component of GDP derived by investment in construction and equipment – expanded 47.8 percent year-on-year in the second quarter. The growth reflected the contribution of public-sector construction projects as well as a “significant increase in investments” in building projects by the city’s casino companies, according to the announcement.

Macau’s second-quarter domestic demand increased by 18.4 percent year-on-year, driven by growth in gross fixed-capital formation.

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