Macau’s economy expanded by just 0.3 percent year-on-year in real terms during the second quarter of 2026, marking a sharp slowdown in growth.
Gross domestic product (GDP) totaled MOP102.33 billion ($12.7 billion) in the three months to June, according to preliminary figures from the Statistics and Census Service (DSEC).
For the first half of 2026, GDP increased by 3.7 percent year-on-year to MOP209.89 billion ($26.0 billion). Economic output remained at 89.1 percent of its corresponding 2019 level.
DSEC attributed the first-half expansion to continued growth in service exports amid higher visitor arrivals. Total exports of services increased by 7.2 percent, supported by a 9 percent rise in visitor numbers.
Private consumption expenditure grew by 2.8 percent. However, government consumption declined by 0.2 percent, while gross fixed capital formation fell by 9.4 percent.
Luxury categories drive retail growth
Retail sales increased by 12.1 percent year-on-year to MOP17.96 billion ($2.22 billion) in the second quarter. Sales volume rose by a smaller 6.2 percent after removing the effect of prices.
Watches, clocks and jewelry sales increased by 38.6 percent, a category relevant to Macau’s casino resorts and their luxury shopping operations. Communication equipment sales surged by 84.1 percent, while department store sales dropped by 18.6 percent.
First-half retail sales reached MOP39.40 billion ($4.88 billion), up 17.2 percent year-on-year.
Despite the improvement, retailers remained cautious. Some 51.9 percent expected business to slow in the third quarter compared with the previous three months, while only 8.7 percent anticipated a more favorable performance.
