Macao’s economic sentiment remains stable amid a mixed performance Economic Sentiment Index is anticipated to stay within the “stable” 5.9 to 6.0 point range until November. That’s according to findings from the Macau Economic Association (MEA), reported by TDM.
Last month, the association’s sentiment index handed out a similar “stable” rating, despite a mixed performance across various economic indicators over the summer.
The tourism and leisure sector demonstrated relative strength – at times reaching levels considered “overheated.” Gross gaming revenue showed impressive stability, exceeding 21 billion patacas (US$2.62 billion) in both June and July, with average daily revenues of 702 million patacas (US$87.55 million) and 714 million patacas (US$89.05 million) respectively.
The local casino industry meanwhile generated 22.15 billion patacas (US$2.76 billion) in gross gaming revenue in August. This strong gaming performance positively impacted the stock performance of the six major casino operators.
[See more: Macao gaming tax revenue rises amid strong GGR growth]
However, not all indicators were positive. The mainland’s consumer confidence index remains sluggish, reflecting weak external demand and dampened consumer sentiment. Macao’s residential property price index continues its downward trajectory. While the local residents’ loan-to-deposit ratio saw a slight rebound to 50.1 percent at the start of the summer, it remains near a decade low.
Investment banks are generally optimistic about Macao’s outlook, revising upward their gross gaming revenue forecasts for this year and next. But macroeconomic imbalances are expected to persist into the second half of the year.
The association highlights that Macao’s economy is at a crucial juncture of transformation, facing macroeconomic imbalances and unsustainable development. Collaborative efforts from both the government and the market are essential, it says, to optimise the business environment, enhance overall competitiveness, and achieve sustainable development.
