Macau economy to expand 8.6 this year, The Economist says

9 June 2010

Macau, China, 9 June – The Macau economy is expected to see expansion of 8.6 percent this year and 9.2 percent in 2011, according to the June edition of the report on Macau by the Economist Intelligence Unit (EIU), of The Economist group.

However, this average growth of 8.9 percent per year will only be achieved if new casino projects are re-launched and gamblers from mainland China continue to visit the territory.

The report added that investment is expected to return to growth – 3.2 percent this year and 8.5 percent in 2011 – after two years of sharp falls (16.8 percent less in 2008 and 35.6 percent less in 2009).

The inflation rate, which in 2009 fell sharply to 1.1 percent after a year previously it had been 8.6 percent, is expected to rise to 3.1 percent this year and 4.6 percent in 2011, also according to the EIU document.

The report said that Macau’s fiscal position remained extremely strong due to tax collection on gaming, which in 2009 accounted for 76.9 percent of the total, whilst adding that public expenditure in investment had fallen from 5.1 billion patacas in 2008 to 4.2 billion patacas in 2009. (macauhub)