GGRAsia – Macau’s GDP to dip 0.3pct in 2019, says EIU

Macau’s GDP to dip 0.3pct in 2019, says EIU

Jun 24, 2019 Newsdesk Latest News, Macau, Top of the deck

The Economist Intelligence Unit (EIU) says in its latest analysis on the outlook for Macau that it expects the city’s economy to contract 0.3 percent this year, after a 3.2 percent first-quarter shrinkage.

The research and analysis division of The Economist Group said in a Friday report that it expected Macau’s 2019 gross domestic product (GDP) to shrink, given fewer government investments in public works and no new openings of large-scale casino resorts.

The EIU’s report also pointed out that the deceleration of mainland China’s economy could affect Macau’s economy, particularly the city’s casinos.

Macau’s casino gross gaming revenue (GGR) tally for the first five months of 2019 stood at nearly MOP125.69 billion (US$15.62 billion), a year-on-year contraction of 1.6 percent, according to official data.

Full-year 2018 GDP in Macau was 4.7 percent greater than in 2017, the city’s Statistics and Census Service said in February. It was the second consecutive annual rise, boosted by revenue growth in the city’s gaming industry.

In its Friday report, the EIU said it expected Macau’s economy to return to growth in 2020, with the city’s GDP increasing by 1.6 percent due to new public works projects and the expected opening of the HKD36-billion (US$4.6 billion) Grand Lisboa Palace casino resort early next year. It will be the first Cotai resort for Macau casino operator SJM Holdings Ltd.