Macau’s economy expected to expand 16.3 pct in 2011 and 14.5 pct in 2012

7 December 2010

Macau, China, 7 Dec – The Macau economy is expected to see real expansion of 16.3 percent in 2011 and 14.5 percent in 2012, years in which investment is expected to start rising once again, according to the December report from the Economist Intelligence Unit (EIU), of The Economist group.

After 2009 and 2010’s gross fixed capital formation, or investment, fell by 35.6 percent and 28.3 percent, respectively, for 2011 the EUI estimates it will post growth of 8.5 percent and 8.9 percent in 2012.

The rate of inflation is expected to continue to rise, as after a projection of 2.9 percent for this year it is expected to rise to 3.4 percent in 2011 and slow by two tenths of a percentage point to 3.2 percent in 2012.

The report added that the projection for average growth of the economy for the 2011/2012 period was 15.4 percent and this figure assumed that the six gaming and gambling concession holders would continue to invest in the sector and the visitors from China would continue to travel to Macau, fundamentally to gamble.

The EUI noted competition from other Asian cities in attracting rich Chinese gamblers, the biggest of which currently being Singapore, where two huge tourist resorts were recently inaugurated, Mariana Bay Sands and Resorts World Sentosa, a joint investment of US$10 billion.

In the Philippines Entertainment City is due to open, a tourist resort with a casino that is owned by state company Philippines Amusement and Gaming Corporation, and the same is due to happen in Ho Chi Minh City, in Vietnam, with the inauguration due in 2013. (macauhub)