Macau GDP dips for the first time in five years
News on 1 Dec 2014
News on 1 Dec 2014
The latest figures from the Macau Census and Statistics Service show a worrying 2.1 percent year-on-year decline in the island’s quarterly gross domestic product (GDP); the first dip in five years.
Officials attribute the dip to a slump in gaming revenues, with the export of gaming services widening to 12.3 percent and other tourism services down 0.7 percent.
However, by the standards of many other countries the economy remained healthy, with economic growth for the first three quarters of 2014 narrowed but still at a creditable 6 percent in real terms.
Macau’s gross gambling revenue declined for the first time in five years in June 2014 and has fallen every month since, accelerating to a 23.2 percent drop in October, the worst on record (see previous reports).
The decline has been blamed on the Chinese government’s tough crackdown on mainland corruption; a slowing Chinese economy and tight credit conditions.
In employment terms the island still performs reasonably well; the number of workers in the gaming industry has continued to lead other island industries, with the gambling workforce rising to 84,600 in Q3-2014, a 3.8 percent increase compared to the second quarter.
According to the current report, the overall unemployment rate on the island is 1.7 percent.
In more general terms, private consumption expenditure grew 7.2 percent, whilst government spending increased by 8.1 percent, and private investment soared by 41.5 percent, indicating continued confidence in the potential of Macau.
