The average growth rate of Macau’s economy is expected to be 4.9% in 2018/2019, with growth this year of 5.8%,slowing the following year to 3.9%, the Economist Intelligence Unit (EIU) said.
The EIU, in its latest report on Macau, noted that this growth is based on the gaming sector, and that gross fixed capital formation,or investment, should originate from public expenditure related to the construction of social housing and transport infrastructure.
The document said that the government’s efforts to diversify Macau’s economic structure are expected to remain unsuccessful but added that gaming operators should continue to focus heavily on tourism not directly related to gambling, which will increase the available entertainment opportunities.
The EIU also said that although China’s economic growth rate is expected to slow slightly over the period under review, the average income of the population will continue to rise, allowing Chinese tourists in Macau to spend more on both casinos and entertainment.
The remaining economic indicators will remain unchanged in 2018/2019, including inflation, which is expected to be 2.9% before falling one-tenth of a percentage point to 2.8% in 2019, the budget balance is expected to be 10.3% in 2009 and 9.4% in 2019, as well as the unemployment rate, unchanged in the two years under analysis at 1.9%.
Macau’s gross domestic product grew by 9.1% in real terms in 2017, ending the contraction in the previous three years, growing by 11.2% in the first half and by 7.2% in the second half. (macauhub)