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HomeNewsMacauFurther gaming recovery drives Macau’s strong growth: IMF

Further gaming recovery drives Macau’s strong growth: IMF

The International Monetary Fund (IMF) has projected that Macau’s economy will continue to experience strong growth in the near term, citing a forecasted 13.9 percent GDP growth for this year. This growth is driven by further recovery in the gaming sector and a pickup in private investment.

Additionally, the IMF notes that this year’s growth is partly attributable to commitments from gaming concessionaires to invest in non-gaming sectors.

The report also mentions that Macau’s real gross domestic product (GDP) recorded an 80.5 percent increase, ‘recovering much of the decline during the pandemic’.

Last week, a statement from the Macau government revealed that the city’s first-quarter GDP surged by 25.7 percent year-on-year in real terms, buoyed by the robust performance of its gaming service exports.

Further gaming recovery drives Macau’s strong growth: IMF
Source: DSEC

With the expected return of tourists to Macau, the IMF notes that ‘declining medium-term growth in mainland China and an increase in the expected frequency of extreme climate events could weigh on Macau SAR’s medium-term growth, while a faster-than-expected pace of integration with the Greater Bay Area (GBA) and successful diversification policy efforts could boost growth.’

Macau-Visitor-Arrivals-April-2024_YoY

In the executive board assessment, the IMF mentions that downside risks cloud the outlook. ‘Sharper-than-expected contraction in the mainland’s property sector and higher-for-longer interest rates in the major economies could negatively affect Macau’s financial system and growth.’

Meanwhile, on the upside, ‘a stronger-than-expected recovery of the gaming sector and faster-than-envisaged integration with the GBA could boost growth.’

Macau GGR, May 2024
Viviana Chan
Viviana Chanhttps://agbrief.com/
Viviana Chan is an editor, interpreter, and journalist. With over a decade of experience, she writes in English, Chinese, and Portuguese. Viviana started her career in Macau-based newspapers, where she became passionate about the region's social, financial, and cultural development. Her writing focuses on the economy, emerging industries, gaming development, political affairs, and cross cultural-exchange in the business and cultural domains. She is avid for news and eager to discover and cover stories that generate public relevance.

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