Macau economy expected to grow by an average of 11 pct in 2014/2015

17 June 2014

Macau’s Gross Domestic Product is expected to grow by an average of 11 percent in 2014/2015, with a rate of 11.3 percent this year and a slight cooling to 10.6 percent in 2015, according to projections from the Economist Intelligence Unit (EIU).

In its latest report on Macau the EIU said that economic expansion was based on “healthy growth in exports of services,” as a result of continuing strong inflows of visitors from mainland China seeking out the territory’s casinos.

Gross fixed capital formation or investment will remain strong in 2014 base don a large number of large hotel projects in Cotai, a land reclamation area between the islands of Coloane and Taipa, which will slow in 2015 as these projects come closer to conclusion.

According to the EIU report, to which Macauhub had access, investment this year is expected to grow by 14.2 percent year on year and then drop abruptly to 6.0 percent in 2015.

The rate of inflation will remain more or less stable despite a slightly higher rise than in 2013, of 5.5 percent, and the EIU projects it to rise to 6.0 percent this year and 6.3 percent in 2015.

The remainder of the main indicators, such as the base interest rate, the territory’s budget deficit and the exchange rate against the main currencies, such as the dollar, yen and euro, will remain stable. (macauhub/MO)