More bad news concerning Macau’s economy is pouring in. A year ago, projections would indicate that Macau’s economy would soon surpass that of Qatar and would make the Chinese-controlled territory the world’s richest economy.
However, with the ongoing pro-democracy movement in neighboring Hong Kong and the continued scuffle between the two global economic giants, the US and China, Macau’s casino gambling industry has been losing its light since the past 12 months.
With slumping revenue, projections show that Macau could soon lose its second spot which maintains as the world’s second-richest economy to Luxembourg.
According to a 2108 report from the International Monetary Fund (IMF), Macau was expected to become the world’s largest economy in terms of per capita gross domestic product. The leading per capita gross domestic product in the world is in Qatar.
It was predicted that Macau’s per capita gross domestic product would reach $143,116 (about MOP1.15 million), while that of Macau was $139,151.
But the recession seems to be hitting Macau. In the latest forecast from the IMF Macau seems to be touching only $113,350 and not $122,489 which it had projected in 2018. On the other hand, Qatar is expected to hit $138,910, per capita GDP. The figure represents a $10,000 increase when compared with the 2018 figures.
This is one of the biggest drops in revenue that Macau’s casinos are facing since 2014. Also, the Economist Intelligence Unit predicts that the city’s economy will shrink by 5.2% in 2019. The prospects of any growth in 2020 seem bleak and it is expected to be hitting positive territory only in 2021.
The IMF has said that if it continues the way it is going for Macau, the city will lose its second spot as world’s richest economy. While Luxembourg is predicted to post a per capita GDP of $115,190 Macau will manage to post only $113,570.
Macau’s casino gambling industry is relying on China to help them out from recession. China is planning a major shift in its policy in Macau and wants to develop it as a financial hotspot like Hong Kong.