The GDP reduced by 1.3% in real terms to MOP99.78 billion, a figure that represents 85.2% of the GDP level seen in the same period of 2019. This dip follows a period of strong economic recovery in 2023 and gradual stabilization in 2024, where the year-on-year real growth rate slowed from 23.0% in Q1 to 3.4% in Q4.
The DSEC highlighted the volatile global environment and increasing uncertainties in China-U.S. relations as contributing factors. Furthermore, rapid shifts in visitor consumption patterns, preferences, and demographics have weakened spending sentiment among visitors to Macau, impacting the local tourism industry.
Despite these challenges, the DSEC maintains that Macau’s economy is on an overall recovery trend, with stable public finances and a positive outlook. Barring significant changes in external and internal conditions, Macao is not expected to face a cyclical economic downturn and is projected to sustain its recovery momentum.
According to the Department, the decrease is attributed to a relatively high comparison base from the same quarter last year, coupled with evolving visitor consumption patterns. Despite an 11.1% increase in visitor arrivals, total exports of services saw a 3.8% year-on-year decrease in real terms, primarily due to a decline in exports of other tourism services.
On the domestic demand front, key components remained relatively stable. Gross fixed capital formation increased by 7.8%, while government final consumption expenditure and private consumption expenditure rose by 1.0% and 0.6% respectively. The DSEC plans to release detailed revised GDP results for the first quarter on May 16, 2025.
