Macau, China, Aug. 23, 2024 (Lusa) - Macau's economy grew by 15.7% in the first half of 2024, compared to the same period last year, thanks to the upturn in gambling, the authorities said on Friday.
The gross domestic product (GDP) of the Chinese special administrative region totalled 204.3 billion patacas (€22.8 billion) between January and June, said the Statistics and Census Bureau (DSEC).
Macau's economy had returned to growth in 2023, with GDP rising by 80.5%, thanks to the end of the "zero covid" policy and the recovery of tourism, reversing a contraction of 21.4% in 2022.
On 6 February 2023, China lifted all restrictions due to the Covid-19 pandemic on travel to Hong Kong and Macau, allowing organised tours to the two cities to resume.
DSEC said in a statement that as a result, the economic benefit of gambling by visitors to casinos increased by 39.9 % year-on-year in the first half of 2024, while other tourist services rose by 2.8%.
Macau welcomed more than 16.7 million visitors in the first half of the year, 43.6% more than in the same period last year, while gaming revenue grew 41.9% to 113.8 billion patacas (€12.7 billion).
DSEC also highlighted a 2.8% increase in domestic demand, partly due to a 9.8% rise in private investment, including increases of 29.8% in investment in equipment and 14.7% in investment in construction.
The statement pointed to "the continued growth in investment in the construction of residential buildings, in addition to the constant reinforcement of investment in large-scale developments" by casino operators.
Private consumption increased by 7.8% "due to the rise in residents' incomes, driven by the continued recovery of the local economy and the labour market", said the DSEC.
On the other hand, government spending fell by 14% following the end of economic support measures, which included giving each resident 8,000 patacas (€917) to make payments, especially in local shops.
The statement added that public investment in construction also fell by 10.8% due to the completion of part of the large-scale public works.
DSEC pointed out that Macau's economy accounted for 86.2% of the GDP recorded in the first half of 2019 before the pandemic began.
According to data compiled by the International Monetary Fund, Macau, with around 687,000 inhabitants, had the tenth highest GDP per capita in the world last year.
On 8 March, the financial rating agency Fitch Ratings predicted that the territory's economy would grow by 15% this year.
A day earlier, the International Monetary Fund had predicted growth of 13.9% this year and a return in 2025 to pre-pandemic levels.
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