Macau, China, 30 May – The Macau economy is expected to continue to see strong growth in 2011/2012 and Gross Domestic Product (GDP) growth will be an average 13 percent per year, 12 percent this year and 14 percent in 2012, according to the latest report on Macau from the Economist Intelligence Unit (EIU), of The Economist group.
As usual, the report’s writers stipulate continued private investment in the gaming and gambling sector and that visitors from China continue to travel to Macau to gamble as conditions for the continued growth of the territory’s economy.
In relation to the recent past the report noted that Macau’s economy grew by an average 19.2 percent per year between 2003 and 2010, driven by the end of the four-decade-long casino monopoly held by Sociedade de Turismo e Diversões de Macau (STDM), owned by gaming magnate Stanley Ho.
Looking to the future, the EIU mentioned competition from other Asian cities focused on attracting Chinese big rollers, the most important being Singapore where two tourism centres and gambling venues have been opened: the Mariana Bay Sands and Resorts World Sentosa, a joint investment of US$10 billion.
As well as Singapore, in Manila the Entertainment City centre is due to open soon, developed by state company, Philippines Amusement and Gaming Corporation, which will be added to some casinos that are already operating in Cambodia and a tourism and gaming resort due to open in 2013 in Ho Chi Minh City.
The EIU analysts expects a rise in gross fixed capital formation (investment) in Macau of 8.5 percent this year and 8.9 percent in 2012, after falling 32.3 percent in 2009 and 20 percent in 2010 and a rise in the rate of inflation to 3.9 percent this year, falling back to 3.2 percent in 2012. (macauhub)