Macau economy expected to grow by an average of 11.7 pct in 2013 and 2014

22 March 2013

The Macau economy is expected to see growth of 9.7 percent this year and 13.7 percent in 2014, or by an annual average of 11.7 percent, according to projections in the latest report on Macau by the Economist Intelligence Unit (EIU), of The Economist group.

On Monday, Macau’s secretary for the Economy and Finance Francis Tam Pak Yuen said that the rate of growth of Macau’s economy would this year remain at below 10 percent and added that although the global economy would likely see an upturn GDP growth of more than a single digit was not expected in Macau.

The territory’s Statistics and Census Bureau said Friday that the rate of growth of the gross domestic product had totalled 9.9 percent in 2012, which was the lowest rate since 2009.

The EIU expects gross fixed capital formation (investment) to grow by 17.3 percent this year and by 12 percent in 2014.

The rate of inflation, in its turn, is expected to fall by four basis points to 5.8 percent this year, according to the EIU’s projections, which forecasts inflation of 6.4 percent for 2014.

The EIU analysts said that consumer spending and investment would remain high, and that investment in particular would be bolstered by developments in the Cotai area, specifically construction of new hotel and gaming projects.

The gaming and gambling sector remains strong and, the report said, although Macau is facing competition from a number of casinos in several Southeast Asian countries it has an established reputation that will be difficult to challenge. (macauhub)