ECONOMY | Staff Reporter, Macau

Macau's GDP growth to drop 5% in 2018

This is due to a slow down in gaming revenue growth.

BMI Research reported a forecast on Macau’s GDP growth, falling from 9% in 2017 to 5% in 2018. This trend will be due to VIP gaming sector’s possible headwinds, and the country’s economic diversification.

In 2017, gaming revenues increased to 14%, driving headline growth despite weakness in domestic economy.

However, BMI Research said that the gaming sector is not expected to continue the trend this year, as revenues remain about 30% below the sector’s 2015 high.

The gaming sector will also be affected by the ongoing long-term economic diversification plans, which aims to decrease VIP gaming revenues as a part of GDP.

“From a longer-term perspective, the biggest threat to Macau’s near-monopoly on gaming in the region comes from rapid casino industry development in neighbouring Philippines, Vietnam, and South Korea, which are keen to take a slice out of Macau’s huge market. Several billion-dollar entertainment complexes have sprung up in recent years and more are in the planning and development stages,” BMI Research added.

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