The Macau economy is expected to see average growth of 11.75 percent in 2013 and 2014, according to the latest report from the Economist Intelligence Unit (EIU), which fir 2013 forecasts growth of 10 percent, one tenth of a percentage point more than in 2012.
According to the report published in June, gross fixed capital formation is expected t fall by almost two percentage points to 17.3 percent this year, following a rate of 19.1 percent in 2012, and to drop to 10 percent in 2014.
In the two-year period, the rate f inflation is expected to fall to 5.7 percent, after totalling 6.1 percent in 2012, and will post an increase again in 2014, when it is expected to total 6.2 percent.
The EIU’s economic growth projection is based on the fact that gamblers from mainland China will continue to visit Macau along with continued investment in new hotels/casinos, mainly in the Cotai area (reclaimed land between the islands of Coloane and Taipa).
The report noted that Hong Kong’s Galaxy Entertainment Group had announced it has raised its budget for expansion of the Galaxy Macau casino by 22.5 percent to 19.6 billion Hong Kong dollars (US$2.5 billion).
Although there is a potential risk that inflow of visitors from mainland China may slowdown in 2013/14, the EIU’s report expects that the amount of cash spent as the casinos will continue to grow over the next two years, due to salary growth on the other side of the border. (macauhub)