The Macau economy is expected to see real growth of 9.8 percent this year and 13.5 percent in 2013, according to the most recent edition of the report on Macau by the Economist Intelligence Unit (EIU), of The Economist group.
Last week, the Macau Secretary for the Economy and Finance Francis Tam Pak Yuen said that economic growth would likely not exceed a single digit this year after posting real growth of 18.4 percent in the first quarter.
Noting the global economic downturn, Francis Tam also said that economic growth in the second quarter would “very likely” not exceed a single digit and that the rate for the first half would be a “low two digits.”
The secretary for the Economy and Finance noted that the slowdown in the territory’s economic growth was a result of global economic cooling, and was not related to any financial problems that could be affecting gaming and gambling concession-holders.
In the report the EIU related lower economic growth in Macau to a slowdown in growth of the Chinese economy, which in 2012 is expected to grow by just 8.2 percent before returning to greater growth in 2013.
The EIU also said that the record growth posted in 2011 in gross gaming revenues, which occurred despite the Chinese authorities seeking to control loan attribution in the country, was a sign that the number of visitors from mainland China would remain “healthy” and bolstered by salary increases and a rise in value of the yuan.
The EIU also projected that investment, or gross fixed capital formation, would this year rise by 7.4 percent, and 10.4 percent in 2013, and that inflation for 2012 would total 4.2 percent and 4.5 percent next year. (macauhub)