Macau’s economy returned to growth in the first quarter of this year, with gross domestic product (GDP) rising by 38.8% year-on-year, with the end of the ‘zero covid’ policy, the authorities said today.
The GDP of the Chinese special administrative region reached 74.1 billion patacas (8.6 billion 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 Macau, the full resumption of travel between Hong Kong and Macau and the resumption of group travel from the mainland of China” as favorable factors.
Macau, 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.
On February 6, China lifted all restrictions due to the covid-19 pandemic on travel to Hong Kong and Macau, allowing the resumption of organized tours to the two cities.
As a result, exports of gaming services doubled compared to the first quarter of last year, while exports of other tourist services increased by 72.9%, underlined the DSEC.
Macau registered almost five million visitors in the first three months of 2023, 163.7% more compared to the same period last year, while gaming revenues almost doubled, to 34.6 billion patacas (four billion euros ).
DSEC data showed that government expenditure increased by more than 30%, due to economic support measures, which included giving eight thousand patacas (920 euros) to each resident, an amount that could be used to make payments, especially in local commerce. .
Investment in public works rose 28.2%, due to the construction of public housing and the fourth bridge between Macau 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 Macau’s economy in the first quarter accounts for about two-thirds of GDP in the first quarter of 2019, before the onset of the pandemic.
Last year, Macau’s GDP had contracted by 26.8%, mainly due to a 51.4% drop, to 42.2 billion patacas (4.9 billion euros) in gaming revenues, the industry dominant in the Chinese region.
In March, the financial rating agency Fitch predicted 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.
