• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Macau’s economy to contract 6 pct in 2016: Moody’s

Jun 29, 2016 Newsdesk Latest News, Macau, Top of the deck  


Macau’s economy to contract 6 pct in 2016: Moody’s

Moody’s Investors Service says it expects Macau’s economy to contract by 6.0 percent year-on-year in 2016, amid falling gaming revenues. The rate of decline will slow to 2.5 percent in 2017, and that would “delay any recovery in growth to positive territory to beyond 2018,” suggested on Tuesday the ratings agency.

“We expect that growth will continue to contract over our rating horizon of the next two to three years, although the pace of decline should slow,” said Moody’s in its annual credit analysis of Macau.

Macau’s gross domestic product (GDP) contracted by 13.3 percent year-on-year in real terms in the first quarter of 2016, according to official data.

The global credit ratings agency in May downgraded Macau’s government debt issuer rating to Aa3 from Aa2 and assigned it a negative outlook.

Monthly casino gross gaming revenue (GGR) in Macau has fallen year-on-year for 24 months in a row. Total casino GGR for the first five months of 2016 has declined by 11.9 percent year-on-year, to MOP91.91 billion (US$11.5 billion).

In Tuesday’s report, Moody’s said “the economic shock to the gaming sector stemming from a decline in tourist arrivals from mainland China has resulted in a sharp drop in the [Macau] SAR’s headline GDP”.

It added: “Our forecasts of a slowdown in China could weigh on tourist inflows and spending in the near term. This situation, coupled with a maturing gaming industry and the ongoing anti-graft campaign will leave gaming revenues under pressure.”

The slump in GGR has had a significant impact on the city’s gross domestic product. In 2015, the economy shrank 20.3 percent year-on-year, extending a 0.9 percent contraction seen in 2014.

The ratings agency however expects ongoing investments from the gaming sector to support capital formation in Macau, especially with new casino resorts opening on various dates between this year and the end of 2017.

Moody’s also noted: “Macau’s fiscal reserve buffer is ample, despite surpluses having dwindled considerably over the last two years. The absence of public debt allowed the SAR to accumulate total reserves amounting to MOP345.1 billion (US$43.2 billion) or 94 percent of GDP at end-2015.”

The Macau government surplus was down by 35.8 percent year-on-year in the first five months of 2016 to MOP16.36 billion, official data showed.

“Our expectation of a decrease in gaming revenues in 2016 and 2017 suggests that Macao’s economic, fiscal and external metrics will likely weaken considerably from prior robust trends,” said Moody’s.


  • tweet
Related articles
  • Gaming recovery helps Melco Resorts EBITDA break even 4Q
    Gaming recovery helps Melco Resorts...

    Feb 26, 2021  

  • SJM posts US$390mln 2020 loss, Cotai scheme in 1H
    SJM posts US$390mln 2020 loss, Cotai...

    Feb 23, 2021  

More news
  • Aristocrat to launch EGM-based responsible gaming features
    Aristocrat to launch EGM-based...

    Feb 26, 2021  

  • Suncity to open clubs at Londoner Macao, Lisboa Palace
    Suncity to open clubs at Londoner...

    Feb 26, 2021  


Latest News

Aristocrat to launch EGM-based responsible gaming features

Aristocrat to launch EGM-based responsible gaming features

Feb 26, 2021  

Casino slot machine maker and digital games provider Aristocrat Leisure Ltd says it plans to launch in the first quarter this year a new product with responsible gaming features, which has already...
Read More
Suncity to open clubs at Londoner Macao, Lisboa Palace

Suncity to open clubs at Londoner Macao, Lisboa Palace

Feb 26, 2021  

Tech supplier Crane ups forecast for 2021 core sales

Tech supplier Crane ups forecast for 2021 core sales

Feb 26, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day


US$53.4 million

Adjusted EBITDA reported by Asian casino operator Melco Resorts and Entertainment for the fourth quarter of 2020



Most Popular

  • Macau casino GGR soared in final days of CNY: brokeragesMacau casino GGR soared in final days of CNY: brokerages February 23, 2021
  • Pansy Ho sells off more stock in MGM Resorts for US$36mlnPansy Ho sells off more stock in MGM Resorts for US$36mln February 23, 2021
  • Macau removes last mainland cities from its quarantine listMacau removes last mainland cities from its quarantine list February 23, 2021
  • GEG in US$1.6bln construction deal on Galaxy Macau Phase 4GEG in US$1.6bln construction deal on Galaxy Macau Phase 4 February 22, 2021
  • Macau VIP challenged by changes in China: Galaxy Ent bossMacau VIP challenged by changes in China: Galaxy Ent boss February 25, 2021
Copyright 2014-2020 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us