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Gaming to help Macau economy see “moderate growth” in 2025

Macau is on a promising path to economic recovery in 2025, with ‘moderate growth’ expected for this year, primarily fueled by heady external demand and a strong gaming industry, a recent report by the city’s de-facto central banking authority says.

For the first three quarters of 2024, Macau’s economy achieved impressive double-digit growth of 11.5 percent, recovering to 86.3 percent of the levels seen before the pandemic in the same period of 2019.

According to the ‘Monetary and Financial Stability Review’ report by the Monetary Authority of Macau (AMCM), the gaming sector played a crucial role in this recovery, with gross gaming revenue (GGR) experiencing a remarkable year-on-year increase of 41.8 percent in the first half of the year.

Despite the high base effect, GGR continued to thrive, recording a 13.9 percent expansion in the third quarter of 2024.

The growth momentum for mass market and VIP baccarat receipts escalated by 14.8 percent and 11.2 percent, respectively. Notably, the mass market surpassed pre-pandemic levels by 7.1 percent when compared to the same quarter in 2019.

The overall increase in service exports also contributed positively, rising by 1.3 percent. Following the deduction of service imports, net service exports edged up 0.6 percent, adding 0.4 percentage points to GDP growth.

Visitor spending has maintained its upward trajectory, albeit at a slower pace. After a rebound of 218.7 percent in 2023, visitor spending, measured by exports of tourism services in GDP accounting, grew at an annual rate of 14.5 percent in the first three quarters of 2024.

Notably, spending on gaming services rose by 28.4 percent, while non-gaming services saw a slight decline of 6.1 percent. However, spending on non-gaming services still exceeded pre-pandemic levels by 14.0 percent compared to the same period in 2019.

The ‘recreational, cultural, gaming, and other services’ sector, employing the largest share of the population, increased by 2.5 percent year-on-year, reaching MOP20,500 ($21,127), while ‘financial activities’ were reported at MOP22,000 ($22,673).

Macau

Looking ahead, Macau’s gaming sector is expected to continue driving economic recovery, supported by sustainable tourism and increased non-gaming investments.

External demand is projected to remain strong, bolstered by enhancements in tourism amenities tailored to evolving consumer preferences.

Moreover, the central government’s stimulus policies introduced last September are expected to gradually improve consumer sentiment in mainland China, further benefiting Macao’s tourism and gaming sectors.

The implementation of the ‘one-trip-per-week’ and ‘multiple-entry’ permits in January 2025 is anticipated to sustain momentum in external demand.

January’s gross gaming revenue (GGR) in Macau reached MOP18.25 billion ($2.27 billion), a decrease of 5.6 percent year-on-year. The figures reflect a marginal increase of 0.3 percent compared to December, while only amounting to 73.1 percent of January 2019 levels.

Macau GGR January 2025

‘With strong fundamentals in fiscal and external balances, Macau is well-positioned to guard against potential global economic uncertainties. As the base effects normalize following the rapid rebound of the past two years, the economy is expected to advance at a moderate pace in 2025, continuing to highlight the resilience and significance of its gaming industry’, the report adds.

Nelson Moura
Nelson Mourahttp://agbrief.com
Editor and reporter with 10 years of experience in Greater China, namely Taiwan and Macau, in printed and online media, with a focus on finance, gaming, politics, crime, business and social issues.

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