Macau GDP grew 4.7% year-on-year in real terms in the third quarter of 2024, with exports of gaming services up 11.2% from a year earlier.
The economy of Macau showed resilience in the third quarter of 2024, with the city’s gross domestic product (GDP) increasing by 4.7% year-on-year in real terms, according to the latest data from the Statistics and Census Service. The growth is a positive sign for the region’s recovery, with the overall economic output reaching 87.3% of the size it was in the same quarter of 2019. This performance highlights continued progress, even as Macau navigates challenges posed by global economic uncertainties.
In a report released on November 18, 2024, the statistics bureau detailed the performance of Macau’s service exports, a key component of the city’s economic activity. Exports of services rose by 1.3% year-on-year, with gaming services leading the charge. Gaming exports grew by a solid 11.2 percent compared to the same period in 2023, a promising sign of the sector’s recovery after the pandemic’s impact on tourism and casino revenues.
However, other areas of tourism services experienced a decline. Exports of non-gaming tourism services fell by 14.5% year-on-year, reflecting the ongoing challenges faced by sectors like hospitality and retail, which have been slower to recover. Despite this, the growth in gaming services remains a cornerstone of Macau’s economic recovery, underscoring the city’s position as a global gaming hub.
In terms of overall performance, Macau’s GDP for the first three quarters of 2024 grew by 11.5 percent year-on-year in real terms, amounting to MOP 301 billion (US$37.54 billion). This marks a significant rebound, with the GDP surpassing the MOP 300 billion mark for the first time since the same period in 2019. Despite this progress, the GDP was still 13.7 percent below the pre-pandemic levels of 2019.
The strong growth in exports of services is attributed in part to a surge in visitor arrivals during the peak summer season. The city saw a notable increase in tourist activity, which directly boosted both gaming and other tourism-related sectors. Exports of services in the first nine months of the year rose by 11.4% year-on-year in real terms, with gaming services experiencing a particularly robust 28.4% increase.
However, exports of other tourism services for the first three quarters showed a mixed performance. While they fell by 6.1% compared to the same period in 2023, they increased by nearly 15% compared to the same period in 2019. This suggests that while recovery is ongoing, certain sectors of the tourism industry have not yet fully returned to pre-pandemic levels.
Private consumption expenditure also showed solid growth, increasing by 5.8% year-on-year in the first nine months of 2024. This was driven by a rise in household income, as the local job market continued to improve and more residents saw wage growth. The positive local economic situation, combined with a steady rise in employment, contributed to an increase in consumer spending, which is a key factor in sustaining economic momentum.
Private investment in Macau has also seen significant growth. Private equipment investment grew by 31.5% year-on-year, while construction investment expanded by 11.6% during the same period. This indicates a strong recovery in the construction and infrastructure sectors, as well as increased confidence from businesses investing in long-term capital projects.
Despite these positive indicators, Macau’s growth outlook for 2024 was recently revised downward by the International Monetary Fund (IMF). In its latest update, the IMF lowered its forecast for Macau’s GDP growth this year from 13.9% to 10.6%, citing a slower-than-expected recovery in tourism and gaming sectors outside of the core gaming services.
The IMF’s revision highlights the risks facing Macau’s recovery, particularly in the face of global economic challenges and uncertainties. While the gaming sector has shown strength, other parts of the tourism industry are still struggling to return to pre-pandemic levels. Additionally, the global economic slowdown and fluctuating international travel patterns could pose challenges to Macau’s sustained growth in the near term.
Nonetheless, the overall picture for Macau remains positive, with key indicators like private consumption, private investment, and gaming exports showing solid growth. As the city continues to recover from the impact of COVID-19, the role of tourism and gaming exports will remain central to its economic success.
Looking ahead, Macau will likely continue to focus on boosting its tourism sector, while also diversifying its economy to reduce reliance on gaming revenues.
Read related article: Macau Forecasts $29.7 Billion in Gaming Revenue for 2025
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