The Macau Economic Association has upgraded the Macau economic climate index and believes it will return to a “stable” level in the second quarter.
According to the association, following the full restoration of customs clearance between the mainland, Hong Kong and Macau, the rapid return of visitors to Macau has led to a significant increase in visitor traffic and gross gaming revenue.
“With a number of positive factors, the local economy is showing signs of rapid recovery. After comprehensive analysis and projection, Macau’s economic climate is now out of the doldrums,” it said.
The association added that in January the economic climate index jumped from 2.2 to 3.4 on the “underperforming” scale and will shift to between 3.6 and 3.9 on the scale in the next three months. It is expected to return to the “stable” level in the second quarter.
The association also mentioned that the development of Macau’s gaming industry has entered a new phase, with the six concessionaires honoring their commitment to invest a total of MOP$118.8 billion (US$14.7 billion) over the next 10 years from the bidding process for gaming licenses, which is also a factor in the recovery of the economy.
However, it believes that even if the epidemic gradually subsides, uncertainties and possible risks still exist.
“Geopolitics, escalating conflict between Russia and Ukraine and rising inflationary pressures, and the continuation of the inverted spread between the two-year and 10-year US treasury bond yields are possible risks,” the association said.
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