Macau Monetary Authority has forecast single digit economic growth for the economy this year due to a significant slowdown in gaming revenues in the second half of the year, according to its report entitled, “Analysis of Monetary and Financial Stability.”
“VIP gaming has lost market share to mass gaming, cooling the growth of gaming services generally,” said the half-yearly report.
In this context, we expect that gaming revenues will see a clear downturn in the second half of the year,” said the Macau Monetary Authority.
In the first half, Macau gaming sector revenues totalled around 172.02 billion patacas, or 15.2 percent more than in the same period of last year and were “higher than expected.”
This projection is explained by the Authority based on “the reduced economic growth expected this year in the Asian region, the dominant market for tourist arrivals, which will restrict the number of visitors and their expenditure,” in the territory.
In the first quarter Macau posted economic growth of 10.8 percent.
The authority also projects that inflation will “remain high this year,” in Macau, at “between 5 and 6 percent,” based on a low rate of unemployment, which is expected to remain at around 2 percent.
In the first five months of the year, year on year inflation totalled 5.24 percent. (macauhub)