Economy swings to a positive in 16Q3

    Macau recorded its first positive quarterly growth in two years, expanding 4 percent year-on-year in real terms in the third quarter of 2016, attributed to a rebound in both exports of services and investment, according to the Statistics and Census Service (DSEC).

    According to the data, external demand showed improvement in the quarter, leading to an increase in exports of gaming services as well as an export of other tourism services, which rose 0.2 percent and 6.5 percent respectively year-on-year.

    Looking at the first three quarters of 2016, the economy of Macau contracted 5.4 percent in real terms.

    Of note was a reduction in investment (18.1 percent), and a decline in the exports and imports of goods which dropped by 22 percent and 15.4 percent respectively.

    Exports of gaming services and exports of other tourism services in the three quarters fell by 8.7 percent and 2.6 percent respectively.

    In August, the Monetary Authority of Macau noted that Macau’s economic contraction may be bottoming out as the gaming industry begins to stabilize.

    “Macau SAR’s current economic adjustment is cyclical, and the sign of bottoming-out is looming. Economic contraction is likely to continue through 2016 but the degree is narrowing as mainly supported by improving net trade,” read the report.

    The Monetary Authority also predicts that the openings of new integrated resorts in 2016 and 2017 will also add to the city’s economy.