The International Monetary Fund has downgraded its predictions for Macau’s economy as the city has been heavily impacted by the Covid-19 pandemic.
Macau.- The International Monetary Fund has adjusted downwards its forecast for Macau. It now predicts the city’s GDP growth for 2021 will be 20.4 per cent. The fund also predicted a consumer price deflation rate of -0.3 per cent.
In April, the IMF had predicted that Macau’s economy would rebound by 61 per cent this year. However, the city’s economy is heavily dependent on gaming revenue, which has been slow to recover from the Covid-19 pandemic due to ongoing restrictions on travel.
Macau has been affected by a new Covid-19 outbreak that further delayed its recovery by leading to the closure of many non-gaming venues, although casinos remained open.
Sanford C. Bernstein Ltd expects Macau’s gross gaming revenue for this month will be down 80 per cent when compared to 2019 levels.
Data from the Public Security Police show that daily average visitors to Macau during the October Golden Week holiday period was down 93.7 per cent compared with last year.