The Macau Economic Association (MEA) has estimated a 70% year-on-year rise in the city’s GDP for the first half of 2023. Despite the jump, it will represent about 65% of the average GDP recorded from pre-pandemic 2017 to 2019, as per the association. The estimated increase is a direct response to Macau’s recovering daily average gross gambling revenue (GGR), on which the city heavily relies.
It is further estimated that due to the abnormally low GDP in the second quarter of last year, the figure for the same period this year will see an increase of 110%, reports Macau Daily Times. The association also noted that the rise is expected because the city was still under Covid-19 prevention measures during part of Q2 of 2022.
The association also expects scores between 5.6 and 5.8 points for the city’s Prosperity Indices for June to September, which continues to fall within stable levels.
Increase in GDP a result of increase in GGR
The estimated increase in GDP is partly expected due to the rising daily average gross gambling revenue (GGR). Macau generated a daily average GGR of MOP 502 million ($62.4 million) in May and MOP 507 million ($63 million) in June, the highest since February 2020. Rises in hotel occupancy and employment rates have also reflected a recovering market, notes the association.
“Compared with the external environment, the performance of Macao’s economic data is still relatively stable and continues to improve. In the first six months of this year, the cumulative gaming revenue has reached nearly 80 billion patacas ($9.9 billion), and the SAR government’s gross gaming revenue target for this year has exceeded 60%,” the association noted.
“Since the summer vacation, the number of inbound and outbound tourists in Macau is still relatively hot. Along with the vigorous recovery of the comprehensive tourism and leisure market, the confidence of local consumers has gradually been boosted.”