Macau Gambling Economy

• Macau Gambling Economy Trade
• Macau Gambling Economy Definition
• Macau Gambling Economy International
• Macau Gambling
• Macau Gambling Economy History

The recession in Macau will deepen owing to the coronavirus (Covid-19) outbreak, which has severely affected tourist arrivals and gambling expenditure. As a result, we expect real GDP to fall by over 60% on annual average in 2020, with only a marginal recovery setting in by 2021. Macau's gaming revenue and overall economy thrived as visitors from Mainland China began to surge in 2003 as travel restrictions loosened and Chinese citizens became increasingly wealthy. For the past month, COVID-19 has slowed down countless economies around the world. But for Macau, “Asia’s Las Vegas,” it has also laid bare decades of unsustainable economic policy — and the failure of its leaders to diversity, to move away from total dependence on casinos and gambling, when they had a chance. The world’s largest gaming center, Macau is the only place in China where casinos are legal. The Macanese economy is growing so strongly that the International Monetary Fund is now projecting. HONG KONG, Sept 22 — Fears China is broadening a crackdown on offshore gambling has sparked a rush to withdraw billions of dollars from the world’s biggest gambling hub Macau, threatening a recovery in the coronavirus-stricken economy, executives say.

Economy - overview:
Since opening up its locally-controlled casino industry to foreign competition in 2001, Macau has attracted tens of billions of dollars in foreign investment, transforming the territory into one of the world's largest gaming centers. Macau's gaming and tourism businesses were fueled by China's decision to relax travel restrictions on Chinese citizens wishing to visit Macau. In 2016, Macau's gaming-related taxes accounted for more than 76% of total government revenue.

Macau's economy slowed dramatically in 2009 as a result of the global economic slowdown, but strong growth resumed in the 2010-13 period, largely on the back of tourism from mainland China and the gaming sectors. In 2015, this city of 646,800 hosted nearly 30.7 million visitors. Almost 67% came from mainland China. Macau's traditional manufacturing industry has slowed greatly since the termination of the Multi-Fiber Agreement in 2005. Services export — primarily gaming — increasingly has driven Macau’s economic performance. Mainland China’s anti-corruption campaign brought Macau’s gambling boom to a halt in 2014, with spending in casinos contracting 34.3% in 2015. As a result, Macau's inflation-adjusted GDP contracted 21.5% in 2015 and another 2.1% in 2016 - down from double-digit expansion rates in the period 2010-13 - but the economy recovered handsomely in 2017.

Macau continues to face the challenges of managing its growing casino industry, risks from money-laundering activities, and the need to diversify the economy away from heavy dependence on gaming revenues. Macau's currency, the pataca, is closely tied to the Hong Kong dollar, which is also freely accepted in the territory.

GDP (purchasing power parity):
$77.33 billion (2018)
$71.82 billion (2017 est.)
$65.84 billion (2016 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 97
[see also: GDP country ranks ]

Macau Gambling Economy Trade

GDP (official exchange rate):
$50.36 billion (2017 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
9.1% (2017 est.)
-0.9% (2016 est.)
-21.6% (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 6
[see also: GDP - real growth rate country ranks ]

GDP - per capita:
$122,000 (2018)
$110,000 (2017 est.)
$102,100 (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 3
[see also: GDP - per capita country ranks ]

GDP - composition, by end use:
household consumption: 24.2% (2017 est.)
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 9.9% (2017 est.)
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 18.5% (2017 est.)
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 0.8% (2017 est.)
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 79.4% (2017 est.)
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -32% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 0% (2016 est.)
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 6.3% (2017 est.)
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 93.7% (2017 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

Agriculture - products:
only 2% of land area is cultivated, mainly by vegetable growers; fishing, mostly for crustaceans, is important; some of the catch is exported to Hong Kong

Industries:
tourism, gambling, clothing, textiles, electronics, footwear, toys

Industrial production growth rate:
2% (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 131
[see also: Industrial production growth rate country ranks ]

Labor force:
400,000 (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 159
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 2.5%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 9.8%
[see also: Labor force - by occupation - industry country ranks ]
services: 4.4%
[see also: Labor force - by occupation - services country ranks ]
industry and services: 12.4%
agriculture/fishing/forestry/mining: 15%
manufacturing: 25.9%
construction: 7.1%
transportation and utilities: 2.6%
commerce: 20.3% (2013 est.)

Unemployment rate:
2% (2017 est.)
1.9% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 18
[see also: Unemployment rate country ranks ]

Population below poverty line:
NA
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: NA
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: NA
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Distribution of family income - Gini index:
35 (2013)
38 (2008)
country comparison to the world (CIA rank, may be based on non-current data): 98
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: 14.71 billion (2017 est.)
[see also: Budget - revenues country ranks ]
expenditures: 9.684 billion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
29.2% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 85
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
10% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 2
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
0% of GDP (2017 est.)
0% of GDP (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 210
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
1.2% (2017 est.)
2.4% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 65
[see also: Inflation rate (consumer prices) country ranks ]

Commercial bank prime lending rate:
5.25% (31 December 2017 est.)
5.25% (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 145
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$8.866 billion (31 December 2017 est.)
$7.858 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 86
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$8.866 billion (31 December 2017 est.)
$7.858 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 88
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$18.24 billion (31 December 2017 est.)
$17.16 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 93
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
$85.5 billion (2 March 2012 est.)
$2.3 billion (31 December 2008 est.)
$46.1 billion (31 est.)
country comparison to the world (CIA rank, may be based on non-current data): 44
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
$16.75 billion (2017 est.)
$12.22 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 18
[see also: Current account balance country ranks ]

Exports:
$1.45 billion (2018)
note: includes reexports
country comparison to the world (CIA rank, may be based on non-current data): 148
[see also: Exports country ranks ]

Macau Gambling Economy Definition

Exports - partners:
Hong Kong 62.1%, China 16.5%, US 1% (2018)

Exports - commodities:
clothing, textiles, footwear, toys, electronics, machinery and parts

Imports:
$11.1 billion (2018)
$9.7 billion (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 97
[see also: Imports country ranks ]

Imports - commodities:
raw materials and semi-manufactured goods, consumer goods (foodstuffs, beverages, tobacco, garments and footwear, motor vehicles), capital goods, mineral fuels and oils

Imports - partners:
China 35%, Italy 8.6%, Hong Kong 7.8%, France 8.4%, Switzerland 7.7%, Japan 8.1%, US 4.1% (2018)

Reserves of foreign exchange and gold:
$20.17 billion (31 December 2017 est.)
$18.89 billion (31 December 2015 est.)
note: the Fiscal Reserves Act that came into force on 1 January 2012 requires the fiscal reserves to be separated from the foreign exchange reserves and to be managed separately; the transfer of assets took place in February 2012
country comparison to the world (CIA rank, may be based on non-current data): 59
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$0 (31 December 2013)
$0 (31 December 2012)
country comparison to the world (CIA rank, may be based on non-current data): 207
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$18.91 billion (31 December 2011 est.)
$14.91 billion (31 December 2011 est.)
country comparison to the world (CIA rank, may be based on non-current data): 81
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$1.166 billion (2012 est.)
$667.8 million (2011 est.)
country comparison to the world (CIA rank, may be based on non-current data): 89
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
patacas (MOP) per US dollar -
8 (2017 est.)
7.9951 (2016 est.)
7.9951 (2015 est.)
7.985 (2014 est.)
7.9871 (2013 est.)

Macau Gambling Economy International

NOTE: 1) The information regarding Macau on this page is re-published from the 2020 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Macau Economy 2020 information contained here. All suggestions for corrections of any errors about Macau Economy 2020 should be addressed to the CIA or the source cited on each page.
2) The rank that you see is the CIA reported rank, which may have the following issues:
a) They assign increasing rank number, alphabetically for countries with the same value of the ranked item, whereas we assign them the same rank.
b) The CIA sometimes assigns counterintuitive ranks. For example, it assigns unemployment rates in increasing order, whereas we rank them in decreasing order.

Macau Gambling

• Gov. Leaders

Macau Gambling Economy History

Talk about a bust. Macau's economy shrank by a whopping 17.2% in the fourth quarter of 2014, according to the Chinese territory's statistical agency.

Gross domestic product for the year was also negative, declining by 0.4% as Beijing's anti-corruption campaign scared visitors away from the gambling mecca.

Macau, like Hong Kong, is a Special Administrative Region of China. It is also the only place in China where gambling is legal. Since 2002, its casino industry has grown into a $45 billion heavyweight, roughly seven times bigger than Las Vegas.

But now gamblers are staying home.

In addition to China's anti-corruption drive, visas are in short supply, and some gamblers are upset by a new ban on smoking in Macau's casinos.

Last June, revenue growth at the casinos turned negative, sparking worries that the territory's gold rush was coming to an end.

Despite continued warnings, the territory has failed to diversify its economy beyond gambling, leaving it heavily exposed to the risk of an industry downturn.

More than 80% of government revenue comes directly from the casinos. When the industry booms and tax revenue jumps, residents -- most of whom are employed in the business -- receive payouts from the government.

Baccarat is the prime attraction in Macau, where the game accounts for the vast majority of tables. The average minimum bet at non-VIP tables is around $250 -- far beyond the reach of casual gamblers.

In an effort to diversify, Macau is working to boost its entertainment and leisure options, which lag far behind the glitz, glam and family fun offered in Vegas. The idea is to offer guests a more complete resort experience.

Some developers have taken note, and are planning new malls and theaters.

But more could be done, especially as other regional gambling destinations take aim at Macau. Casinos in Cambodia, Vietnam and the Philippines are all working hard to attract Chinese gamblers.

Analysts at Fitch Ratings said they expect revenue growth to resume in the second half of the year -- and insist that Macau is still a good bet.

'While the recent operating declines are concerning we are encouraged by the fact that the long-term fundamentals for the higher-margin, lower-volatility mass business remain intact,' the ratings agency said.