The Macau Economic Association has released its latest findings on Macau’s economic performance for the first half of 2024. According to their report, Macau’s Gross Domestic Product (GDP) is estimated to have grown by a robust 17.5% in the initial six months of the year. However, projections suggest a potential slowdown in the latter half of 2024. This assessment is based on various economic indicators, including the significant increase in Gross Gaming Revenue (GGR), which reached MOP$113.8 billion (US$14.2 billion) in the first half of the year, marking a substantial rise of 42.9% year-on-year.
Gross Gaming Revenue (GGR) Performance
One of the key highlights of Macau’s economic landscape in 1H24 was the remarkable surge in Gross Gaming Revenue. The GGR totaled MOP$113.8 billion, a notable 42.9% increase compared to the previous year. This achievement represents 52.7% of the government’s targeted full-year budget, underscoring the pivotal role of the gaming sector in Macau’s economic makeup. Specifically, the second quarter contributed MOP$56.43 billion (US$7.02 billion) to this total, reflecting a 24% increase over the same period last year.
GDP Growth Dynamics
Macau’s GDP growth trajectory exhibited significant variability throughout the first half of 2024. The second quarter saw a growth rate of approximately 10%, contributing to an overall growth rate of 17.5% for the first half of the year. Despite uneven economic development in certain sectors, stable conditions prevailed due to favorable factors such as increased visitor arrivals and exports of goods and services.
Economic Climate Index and Outlook
The Macau Economic Association’s assessment of Macau’s Economic Climate Index for May and June 2024 indicates a stable rating, with values of 6.4 and 6.3 respectively. This index reflects the overall economic sentiment and stability during these months, despite challenges such as lower-than-expected GGR in June. Looking ahead, the Association anticipates the Economic Climate Index to remain steady, projecting values between 6.5 and 6.6 over the next seven to nine months.
Factors Influencing Economic Growth
Several factors are expected to influence Macau’s economic trajectory in the second half of 2024. Consumer confidence and effective demand in mainland China remain pivotal considerations. The Association notes that these factors currently present challenges, potentially affecting Macau’s economic performance moving forward. Moreover, comparisons with a strong economic base from the previous year could moderate GDP growth rates in the latter part of 2024.
Government Support and Market Dynamics
The report also highlights the anticipated increase in economic activities during the second half of the year, buoyed by robust support from China’s central government. This support is expected to inject vitality into Macau’s market dynamics, contributing to overall stability despite anticipated challenges.
Macau’s economic outlook for the first half of 2024 showcases significant growth in GDP and GGR, underscoring the resilience of its economy. While challenges loom in the form of fluctuating economic indicators and external factors, sustained support from China’s central government and ongoing economic activities are poised to bolster stability in the coming months. The Macau Economic Association’s projections provide a comprehensive insight into the current economic landscape, emphasizing both achievements and potential areas of concern as the year progresses.