Macau’s economy witnessed a significant resurgence in the first half of 2024, with its gross domestic product (GDP) reaching MOP204.3 billion (US$25.5 billion), marking a 15.7% year-on-year increase. This growth brings the economic output to 86.2% of its level in the first half of 2019, surpassing the MOP200 billion threshold for the first time since the pandemic began.

Tourism and Gaming Lead Economic Recovery

According to the latest data from Macau’s Statistics and Census Service (DSEC), the robust growth in GDP is largely attributed to the increased number of visitor arrivals and the booming tourism sector. Exports of gaming services surged by 39.9% year-on-year, while other tourism-related services saw a 2.8% increase, with both sectors surpassing their corresponding levels in 2019 by over 20%.

The steady rise in visitor numbers has significantly bolstered Macau’s service exports, which experienced a 17.6% year-on-year growth. However, the imports of services saw a decline of 6.2% during the same period, highlighting a shift towards domestic consumption and investment.

Rise in Private Consumption and Investment

Private consumption expenditure showed a notable increase of 7.8% year-on-year, driven by higher incomes among Macau residents as the local economy and labor market continue to improve. Household final consumption expenditure within the local market grew by 7.0%, while external spending by households saw a more substantial rise of 13.5%.

Investment activities also contributed to the economic growth, with gross fixed capital formation rising by 9.8% year-on-year. This increase reflects the continued investments by enterprises in Macau’s growing business environment. Private equipment investment saw a substantial 29.8% increase, and private construction investment rose by 14.7%, fueled by ongoing residential projects and large-scale construction within integrated resorts.

Quarter-on-Quarter Steady Growth

Analyzing the quarterly data, Macau’s GDP in the second quarter of 2024 grew by 6.9% year-on-year, representing 85.2% of its size in the same quarter of 2019. This growth is attributed to the continued expansion of service exports, particularly gaming services, which increased by 22.6%. However, exports of other tourism services experienced a 9.5% decline due to a high comparison base from the previous year, when travel restrictions were gradually lifted.

On the domestic front, demand rose by 2.2%, supported by a 4.8% increase in private consumption expenditure and a 6.7% rise in gross fixed capital formation. In contrast, government final consumption expenditure decreased by 7.3%, reflecting the cessation of certain public spending initiatives.

Macau’s economic recovery in 2024 highlights the critical role of tourism and gaming in driving growth, with the first half of the year showing significant gains across key sectors. As the city continues to rebound from the pandemic’s impact, sustained investments and rising consumption levels are expected to further solidify Macau’s economic position in the coming quarters.

Source:

GDP soars 15.7% in H1, macaudailytimes.com.mo, August 26, 2024.

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