While the SAR’s prosperity indicators are expected to remain stable for the rest of this year, the Macau Economic Association has highlighted a number of “concerning trends” that the city is grappling with, according to reporting by TDM.
In its latest prosperity forecast, the association noted that mainland China’s consumer confidence index remains in a downturn, despite the series of stimulus measures recently unveiled by the central government.
As Macao’s economy largely relies on mainland Chinese tourists pumping money into the city’s casinos, ongoing weak consumer confidence could be problematic. The association pointed out that all six major gaming operators’ stock prices were currently in decline.
[See more: Macao’s gaming tax revenue already exceeds the full-year total for 2023]
The SAR’s non-performing loan ratio also reached a new peak of 5.1 percent in August 2024, which was higher than what was registered in neighbouring regions. This ratio impacts the profitability of local banks and exacerbates their asset risk, TDM said.
At the same time, the association forecast that full-year gross domestic product (GDP) would come in at about 400 billion patacas, with an annual growth rate of between eight and 11 percent – in line with its 10 percent prediction earlier in the year. That would equate to between 87 and 90 percent of 2019’s pre-pandemic GDP.
Researchers added that GDP in the first three quarters of 2024 should be up between 10 and 30 percent year-on-year, and predicted that the SAR’s economic prosperity index would remain stable for the fourth quarter.
