Growth seen in Macau’s gaming sector over several months is expected to drive the territory’s economic growth to 5.2% in 2017, to be followed this year by a growth of 5.3%, according to the latest projections from the Economist Intelligence Unit (EIU).
The Macau Statistics and Census Bureau on 28 February is scheduled to release data on the evolution of the Gross Domestic Product in the last quarter and throughout 2017.
According to a statement released on Thursday, it was precisely this growth in casino revenues that allowed Macau to bring an end to an uninterrupted series of eight quarters of economic contraction with a growth of 4.0% in the third quarter of 2017.
The EIU said that the decline in gambling revenues had led to the temporary postponement of some projects, but added that the August inauguration of Wynn Palace in Cotai, a landfill zone between the islands of Coloane and Taipa, showed that most projects were on target.
The report adds that the opening of the Wynn Resorts project on 29 January, of the MGM Cotai and those yet to be completed w, ll increase the growth capacity of gaming-related exports over the next few years.
However, investment is expected to remain at reduced values, given that there are no known plans for the construction of projects similar to those that are already or are due to start operating in Cotai.
The EIU’s forecast for gross fixed capital formation, or investment, is -8.5% this year, which will follow growth of 0.5% in 2018.
The falling inflation rate, which in 2017 stood at 1.23%, lower than the EIU’s 1.5% forecast, is likely to rise to 2.9% in 2018. (macauhub)