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Macau In Danger Of slipping into recession
Monday April 27,2015 : WARNING ON DECLINING MACAU ECONOMY
Danger of gambling island slipping into recession, says university.
If the fading gambling revenues being experienced at present persist, the Chinese gambling enclave of Macau could be headed for its biggest recession in 33 years, researchers at the University of Macau predict.
Gross Domestic Product could shrink by 14.7 percent if the current gaming income remains in the patacas 20 billion (US$2.5 billion) a month range for the remainder of the year.
That will translate to a Patacas slide from 378.8 billion in 2014 to a worrying Patacas 323 billion, the researchers claim in their 2015 Macroeconomic Forecast.
The report observes that the forecast is a mid-point perspective scenario that takes into account a pessimistic scenario of a 20.4 percent decline, and a more optimistic 9.4 percent slide in GDP.
There is some light on the horizon, however; the study believes that the opening of new casinos and hotels in the second half of 2015 could provide a fillip to slow the decline for the industry and the island.
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