Macau economy expected to have grown 9 pct in 2012

25 January 2013

Macau’s economy in 2013 is expected to post single digit growth, following 10 consecutive quarters of two digit annual growth, said the Macau Monetary Authority (AMCM) in its report entitled, “Analysis of Monetary and Financial Stability.”

“External demand continues to slow whilst internal demand, which is the equivalent of 40 percent of external demand, will continue to see rapid growth” the report said, noting that the region, “will continue to see a positive outlook.”

In 2012, Macau’s economy is expected to have grown by 9 percent after posting 10 percent growth in the first three quarters.

Tourism, as the region’s main economic sector also saw a slowdown that is expected to continue this year, said the AMCM.

“As a result of the risk of world markets, foreign currency spent by tourists will continue to be exposed to the external risks of regional economies, with a slowdown in VIP betting,” the document said.

Noting that external demand would contract and that the economy would be bolstered by internal demand, the AMCM document noted “large public investments such as the development of Hengqin island, the light railway system and construction of the Zhuhai/Macau/Hong Kong bridge, which will drive gross fixed capital formation in 2013, in addition to tourist projects being built in Cotai (Coloane/Taipa). (macauhub)