World’s top gambling market Macau has been facing tough economic challenges recently. The slowdown in the Chinese economy and the prolonged US-China trade war has been taking a toll on its casino gambling industry for almost over a year now.
The recent figures released by the government in Macau reveal that the economy in Macau has shrunk consecutively for the second quarter in 2019.
The data released by the Statistics and Census Service (DSEC) on Friday last week, show that the economy of the Chinese-controlled territory has shrunk by 1.8 percent year-on-year in the second quarter of 2019. The economy declined by a significant 3.2 percent in the first quarter.
The overall decline in Macau’s economy is estimated at 2.5 percent for the first six months of 2019.
The DSEC blamed the year-on-year decline in gross fixed capital formation for the shrinking economy. The gross fixed capital formation tanked by about 25 percent year-on-year in the second quarter. While the export of gaming services slid 0.8% year-on-year and the export of goods was down 24.4%.
“Given the incessant increase in external uncertainty, it is expected that the local economy will continue to experience recessionary pressure during the second half of this year,” the Office of the Secretary noted.
The casino gambling sector which accounts for about 63 percent on Macau’s economy has also been underperforming. Last month, Macau’s gaming revenue dropped unexpectedly by 3.5 percent year-on-year.