Macao’s economic prosperity index between January and March is forecast to remain stable, according to a statement issued yesterday by the Macau Economic Association (MEA).
The index, which has a maximum score of 10 points, is calculated based on 13 indicators, including gambling revenue, visitor arrivals, hotel occupancy and unemployment.
Current predictions indicate that the index will reach 6.4 points in January, 6.5 points in February and 6.4 points in March – a range classed as “stable” by the MEA.
The index remained in the stable range during 2024, totalling between 6.1 points and 6.6 points.
Looking at the year ahead, the MEA believes that Macao’s GDP will experience a year-on-year growth of 5 percent, a figure that falls below the 7.7 percent forecast by the University of Macau last Thursday.
[See more: UM researchers expect Macao’s GDP to grow by almost 8 percent this year]
The association says various central government measures – such as the multiple-entry permits for Zhuhai and Hengqin residents, which launched on 1 January – will be a boon for local retailers and restaurateurs.
The Macao government revealed recently that the number of visitor arrivals had exceeded 100,000 on several days since the introduction of the scheme.
The MEA also mentioned that Macao’s economy would gain from China’s plan to loosen its monetary policy this year, from an expected lowering of the reserve requirement ratio to the slashing and maintenance of low interest rates and a broad liquidity.
Globally, the association said that the world economy was currently still full of uncertainties, adding that the pace of interest rate cuts in surrounding markets was “confusing.”
It further stressed that the imminent return of US President-elect Donald Trump to the White House would result in tariffs, fluctuations in energy prices and instability in financial markets.
