ollowing growth of 27.1 percent in 2010 and 20.8 percent in 2011, the Macau economy is expected to see more moderate growth rates in 2012 and 2013, an average of 11.7 percent per year, due to an expected cooling of the Chinese economy which, according to the EIU, is this year expected to post growth of just 8.2 percent before picking up again in 2013.
Investment, or gross fixed capital formation, this year is expected to rise by 7.4 percent, following a drop of 16.8 percent in 2010 and growth of 10.5 percent in 2011, before accelerating to 10.4 percent in 2013. The authors of the report on Macau said that all projections were based on continued growth of the gaming and gambling sector, both in terms of investments made by concession-holding companies, and Chinese gamblers continuing to visit Macau to try their luck at the region’s casinos.
However, and similarly to previous years, the EIU noted there were some dark clouds on the horizon, specifically increasing competition from some other Asian cities, notably Singapore, which ahs two gaming and tourism resorts operating, and from the Philippines, Cambodia and Vietnam’s Ho Chi Minh City.
According to the EIU the rate of inflation in Macau is expected to drop slightly, from 5.8 percent in 2011 to 4.0 percent this year and 4.5 percent in 2013.