IMF says Macau economy is expected to contract by 29.6% in 2020

16 April 2020

The Gross Domestic Product of Macau is expected to record a contraction of 29.6% this year, in addition to the fall of 4.7% in 2017, according to the World Economic Forecast, a report released in Washington by the International Monetary Fund (IMF).

The report added that in 2021 Macau’s economy will grow at a rate of 32.0%, almost cancelling out the fall seen in the previous two years.

Macau is, in fact, the country or territory of Asia which has recorded the biggest drop in the development of its economy, with the IMF pointing to the biggest rate of growth of 2.7% for Vietnam and minus 7.2% for New Zealand.

The report published by the IMF does not provide justifications for the expected contraction of Macau’s gross domestic product (GDP) in the two years under analysis.

Macau’s GDP recorded a real contraction of 4.7% in 2019, to a total of 434.7 billion patacas (US$54.337 billion), and GDP per capita at current prices fell by 6.6% to 645,438 patacas (around US$79,977).

The IMF report added that the rate of inflation will remain relatively stable and low in 2020/2021, with rates of 2.8% and 2.0%, respectively. And the same is the case for the rate of unemployment which, after peaking at 2.0% this year, is expected to drop to 1.8%, compared with 1.7% in 2019.

The Macau Statistics and Census Bureau is due on 25 May to publish its GDP figures for the first quarter of 2020, a period in which the new coronavirus outbreak began. (macauhub)