IMF Says Macau’s GDP To Slip By 1.3 Percent In 2019

IMF Says Macau’s GDP To Slip By 1.3 Percent In 2019

It is going to get difficult for Macau as it has been for the past year. While analysts have given up on hopes of positive revenue growth in any given month of the final quarter of the year, now it’s the International Monetary Fund (IMF) that predicts Macau’s gross domestic product (GDP) to fall by 1.3 percent in 2019.

The World Economic Outlook report published by IMF also speculates a 1.1 percent decline in the city’s GDP in 2020 indicating that there is no quick way put for Macau’s casino gambling industry which makes over 80 percent in contribution to the city’s GDP.

The IMF has said that the rate of growth in Macau’s GDP would be 4.3 percent this year.

Macau’s casino gambling industry has been having a tough time amidst the US-China trade war and pro-democracy protests in the neighboring hong Kong.
Moreover, analysts have predicted a dry fourth quarter for Macau as far as the revenues from casinos are concerned. According to Morgan Stanley, a financial analytics company, Macau will struggle to post positive revenue growth in any of the three months in the final quarter of the year.

Analysts Praveen Choudhary, Thomas Allen, and Gareth Leung said that October GGR would be 6% down year-on-year. They also said that November and December would post a 9% decline year-on-year.

“We expect Q4 revenue growth for both mass and VIP to decelerate compared to the first nine months in Macau. Driven by high [2018] base, lower [tally of] overnight visitors and general economic slowdown,” the analysts said.

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