Macau economy expected to grow by an average of 13 pct in 2012 and 2013

30 November 2011

Macau, China, 30 Nov – The Macau economy is expected to post real average growth of 13 percent in 2012 and 2013, years in which investment is expected to start rising slightly against expected figures for 2011, according to the latest report from the Economist Intelligence Unit (EIU), to which Macauhub had access.

The projections included in the report point to real growth of 12 percent in 2012 and 14 percent in 2013, which is less than the 22 percent projected for this year, and a slight rise in gross fixed capital formation (investment) from 8.5 percent this year to 8.9 percent in 2012 and 10 percent in 2013.

The inflation rate, according to the report, is expected to see a sharp fall to 3.6 percent in 2012 and 4.3 percent in 2013, against an expected rate of inflation of 6.1 percent this year.

According to the document, the drop in real domestic product growth will be due to a slight cooling of the Chinese economy, which in 2012 is expected to grow by just 8.2 percent before returning to greater growth in 2013.

One of the risks for the Macau economy could, according to the EIU, be increasing competition from casinos in other Asian cities, such as Singapore where two huge tourist resorts – the Marina Bay Sands and Resorts World Sentosa – , including hotels, entertainment and gambling and which cost US$10 billion. (macauhub)