Macao’s economy grew again in the first quarter of this year, with gross domestic product (GDP) growth of 38.8% year-on-year, with the end of the “covid zero” policy, authorities said Thursday.
The GDP of the Chinese special administrative region reached 74.1 billion patacas (8,600 million euros) in the first three months of 2023, said the Directorate of Statistics and Census Services (DSEC).
The DSEC, in a statement, pointed to the “ease of entry restrictions in Macao, the full resumption of travel between Hong Kong and Macao, and the resumption of group tours from mainland China” as favorable factors.
Macao, which, like China, followed the “zero covid” policy, announced in December the cancellation of most prevention and containment measures, after almost three years of strict restrictions.
China lifted on February 6 all restrictions due to the Covid-19 pandemic on trips to Hong Kong and Macao, allowing organized tours to the two cities to resume.
As a result, exports of gambling services doubled compared to the first quarter of last year, while exports of other tourism services increased by 72.9%, the DSEC stressed.
Macau records highest gaming revenue since the start of the pandemic
Macau recorded nearly five million visitors in the first three months of 2023, up 163.7% from the same period last year, while gaming revenue nearly doubled to 34.6 billion patacas (four billion euro).
DSEC data showed that government spending increased by more than 30%due to the economic support measures, which included the delivery of eight thousand patacas (920 euros) to each neighbor, an amount that could be used to make payments, especially in local businesses.
Investment in public works increased by 28.2%, due to the construction of public housing and the fourth bridge between Macao and Taipa. On the contrary, investment in private construction fell by 17.5%, due to the “decrease in investment in casinos,” the statement said.
DSEC highlighted that Macao’s economy in the first quarter represents approximately two thirds of GDP in the first quarter of 2019, before the start of the pandemic.
The end of the restrictions leads to a new record for retail sales in Macau, earning 2.8 billion euros in the first three months
Last year, Macao’s GDP contracted by 26.8%, mainly due to a drop of 51.4%to 42.2 billion patacas (4.9 billion euros) in gaming revenue, the dominant industry in the Chinese region.
In March, financial ratings agency Fitch forecast that Macau’s economy will recover 48% this year, with casino turnover reaching half the pre-pandemic level, thanks to the end of the “zero Covid” policy. .
Source: Observadora
