Macau’s economy will continue to see oscillations in the near future, said the Secretary for Economy and Finance Lionel Leong, who added the government was observing and closely following developments.
Leong Vai Tac said the government is in touch with different sectors of economic activity, following changes in the unemployment rate and buying power as well as the pressure that the financial system faces.
Speaking after attending a public session, the Secretary pointed out that the 2.5% drop in Gross Domestic Product (GDP) in the first half of 2019 compared to the same period last year was due to the reduction in construction work and investment in fixed assets.
Leong recalled that in the first half of 2018 major works were underway, such as those at the Hong Kong-Zhuhai-Macau Bridge border post, which did not happen during the first six months of 2019, leading to a contraction of GDP.
The secretary added that service exports rose slightly by 0.8% year-on-year, despite the 0.8% decline in gaming services exports, which shows that there is no major change in service exports in the first half.
However, there was a one-digit contraction in gaming revenues in July and August and current figures indicate that in September the results will not be optimal either.
If there are no other favourable factors or major changes, Macau’s GDP in the third quarter is expected to show another contraction, said the Macau Government Secretary for the Economy and Finance. (Macauhub)