Updated GDP forecasts show the gambling hub’s growth outpacing the rest of the world, as the rest of Asia continues to pack a decent punch despite the continued economic and market malaise in China.
The world’s largest gambling hub again seems to be alive and well. That is saying something given the city had to practically lock its doors and then throw away the keys during a long and difficult pandemic.
Lest anyone forget, its border was closed to mainland China for almost three years in much the same fashion as its similar, yet completely different, cousin and neighbor – Hong Kong.
Enter the Dragon
This year, a Visual Capitalist graphic auspiciously published on the Second Day of the Lunar New Year (11 February) shows Macau is expected to grow its GDP in 2024 by 27.2 percent, or well more than a quarter in size.
That is a higher pace than any other country in the world, with the figures being based on updated, January International Monetary Fund (IMF) forecasts.
Fanciful Rides
It represents a remarkable comeback for the city given that tax receipts had fallen 85 percent between 2019 and 2022, according to a December 2023 article in the UK weekly newspaper «The Economist» (email registration required, subsequent allotment of free articles given).
The magazine itself acknowledged that the gondoliers are back in numbers, fully employed and singing to tourists plying the artificial canals at the Venetian Macao resort in a way they haven’t been for a very long while. According to the publication, more people visited the city in the first nine months of 2023 than in the three previous years combined.
No Slouches
The rest of the region is no slouch either, despite the general conventional wisdom, finews.asia included.
China is still expected to pull off growth of 4.6 percent in 2024 despite the continued property crisis and generally beat up equities markets. If you go and include India as part of the greater Asia Pacific economic sphere, the world’s most populous nation makes it to the top ten worldwide by placing in ninth with a forecast 6.5 percent increase.
New Generation of Tigers
In Southeast Asia, Cambodia leads the pack at 6.1 percent, followed by the Philippines (5.9 percent), and Vietnam (5.8 percent), with Malaysia and Thailand clear laggards at 4.3 percent and 3.2 percent respectively.
Ironically, the chip-making hotbed of Taiwan is only seen growing by 3.0 percent this year, with the financial centers of Hong Kong and Singapore upping their economic heft by 2.9 and 2.1 percent. Korea then straddles the latter two with a 2.2 percent showing.
Industrialized World
That latter growth rates are a jumping-off point for major Western economies, given that the US is seen growing at that exact rate as Singapore's this year.
Although it might sound sluggish, it remains faster than most other developed countries as only the Swiss economy can keep up with an expected pace of 1.8 percent.
The New 1 Percenters
The rest of the G-7, Europe, and even Japan, are not doing quite as well. Canada is expected to grow 1.4 percent, with the Netherlands and Australia both seen at 1.2 percent. France is seen posting a 1 percent increase in the size of its economy, as are Finland and New Zealand.
The rear is brought up by Belgium and Japan (both at 0.9 percent), Austria (0.8 percent), Italy (0.7 percent), Sweden, the UK (both 0.6 percent) and Germany (0.5 percent).
Disparate Nature
One thing the IMF forecast and the graphic point up is the disparate nature of financial markets and economic growth.
China continues to putter along with a solid growth rate even though its equity market is practically in a four-year, depression-era quantum cave-in while US and Japanese equities boom despite the moderated or even weak economic growth rates.