Macau economy to grow between 20.5% and 44.1% in 2023, analysts say

According to the University of Macau, the government will bring in at least MOP55bn (US$6.7bn) in 2023.

Macau.- The University of Macau has predicted that local economy will grow between 20.5 and 44.1 per cent this year, resulting in government revenue of between MOP55bn (US$6.7bn) and MOP66.1bn. The Macroeconomic Forecast for 2023 from the Centre for Macau Studies and the Department of Economics forecasts an increase in service exports of between 35.2 and 82.8 per cent. 

Analysts expect a more noticeable economic recovery in the second half of the year, basing their forecasts on three different scenarios. The best scenario predicts a 67 per cent recovery of 2019 GDP and an 82.8 per cent recovery in exports of services. The researchers also forecast three scenarios regarding visitor arrivals, which are expected to total 10.75 million in the least optimistic scenario. In 2019, Macau received close to 40 million vistors.

During a meeting on government economic policies, chief executive Ho Iat Seng said that the domestic economy is picking up following three years of Covid-19 restrictions. he cited the 450,000 visitor arrivals during the Chinese New Year holiday as a positive sign. 

Macau reported an 82.5 per cent year-on-year increase in gaming revenue to MOP 11.6bn last month, marking the first year-on-year increase since February 2022 and the highest monthly revenue since January 2020 when Covid caused economic turmoil.

The Monetary Authority of Macau (AMCM) has noted that Macau’s GDP fell by 33.4 per cent year-on-year in the third quarter of 2022 while the contraction of GGR widened to 70.1 per cent. The leading service exports decreased by 46.7 per cent.