In 2024, Macau’s economy has displayed encouraging signs of recovery, with the region’s gross domestic product (GDP) reaching a substantial MOP204.3 billion (US$25.5 billion) in the first half of the year. This signifies a noteworthy year-on-year growth of 15.7%, bringing the overall economic size back to 86.2% of the pre-pandemic level from the same period in 2019. Hitting the MOP200 billion milestone for the first time since the pandemic outbreak, Macau’s GDP has showcased a resilient rebound.
The Macau Statistics and Census Service (DSEC) has credited this economic resurgence to a significant increase in visitor arrivals and a corresponding rise in tourism activities. The surge in tourists has propelled continuous growth in service exports, particularly gaming services, which have escalated by 39.9% year-on-year. Additionally, other tourism-related services have experienced a moderate increase of 2.8%. Surpassing their levels from the first half of 2019 by over 20%, both categories reflect a robust recovery in Macau’s key sectors.
Service exports made up 81.8% of Macau’s GDP in the first half of 2024, amounting to nearly MOP167.03 billion (US$20.8 billion). This marks the first time since early 2019 that service exports have played such a pivotal role in the economy’s composition, underscoring tourism and gaming as key drivers of economic growth.
The uptick in residents’ incomes has fueled growth in private consumption, with private consumption expenditure increasing by 7.8% compared to the previous year. Both local spending and expenditures abroad have contributed to the economic upturn, supported by higher household incomes and increased consumer confidence, resulting in a growth rate of 6.9%.
Macau’s gross gaming revenue (GGR) has witnessed a substantial surge, rising by 36.7% year-on-year to MOP132.2 billion (US$16.4 billion) between January and July 2024. This impressive performance in gaming revenue underscores the sector’s crucial role in Macau’s economic revival.
Looking ahead, analysts from CLSA have forecasted that Macau’s casino GGR could reach MOP232.7 billion (US$28.6 billion) for the entire year of 2024, marking a 27% increase year-on-year. Despite a slight adjustment to GGR estimates due to China’s crackdown on illegal money exchanges, which has impacted gaming revenues, Macau’s economic outlook remains positive. The sustained recovery in tourism and gaming services sets a solid foundation for future economic stability and growth as the region continues to navigate post-pandemic challenges.
