Macau to keep growing in the short term
According to the IMF, Macau’s GDP will grow seven per cent in 2018 and 6.1 per cent in 2019, slightly slower than 2017.
Macau.- The Macau market continues to stand tall as one of the most successful gaming markets in the world, and the International Monetary Fund (IMF) expects it to continue to grow. According to its latest forecast, Macau’s gross domestic product (GDP) will grow by seven per cent this year and 6.1 per cent in 2019, slightly slower than 2017’s.
According to the IMF, exports of gaming services (which reflect spending by tourists in local casinos) went up 16.4 per cent year-on-year in 2017 and helped achieve the 9.1 per cent GDP growth. It was the first annual rise since 2013.
The region’s GDP has been related to its gross gaming revenue (GGR), which was down three consecutive years (2014, 2.6 per cent; 2015, 34.3 per cent; 2016, 3.3 per cent) before jumping 19 per cent in 2017. The strict relationship between both indicators shows just how important gambling is to the city.
Furthermore, according to brokerage Bernstein (in an analysis prior to operators’ results), continued strength in both VIP and mass led to a 21 per cent growth in gross gaming revenue (GGR) during the first quarter. Taking this into consideration, the city’s GDP will probably continue its triumphant march if the GGR growing trend continues.
