Macau economy to grow again in 2016: EIU

The Economist Intelligence Unit has predicted Macau’s economy will start growing again in 2016, with real growth of 5.3 percent, according to the latest report on Macau.

After Gross Domestic Product was recorded at a growth rate of 10.7 percent in 2013 and negative 0.4 percent in 2014, the EIU expects a decrease of 6.0 percent for this year and a return to growth the following year.

The economy, largely affected by the decline in gaming revenues, remains buoyed by strong domestic demand as a result of a near-full employment rate. According to the EIU, the economy will register a sharp drop this year and return to growth in 2016.

The inflation rate is expected to slow to 4.0 percent this year and 4.9 percent in 2016, compared with rates of 5.5 percent and 6.1 percent in 2013 and 2014, respectively, due to a drop in the number of visitors and purchases of luxury goods.