CBRE Capital Advisors Inc has expressed its views regarding the future growth trajectory of Macau's casino gross gaming revenue (GGR), highlighting the connection to China's economic environment. While acknowledging a substantial increase in GGR by nearly 19% year-on-year in June, reaching MOP21.06 billion (US$2.61 billion), CBRE anticipates a return to steady GDP-like growth levels in Macau. The brokerage emphasized the dependency of this growth on economic conditions in China, as stated by analysts John DeCree and Max Marsh. Reflecting on past performance, the increase in Macau’s GGR greatly surpassed initial forecasts by analysts, largely due to external factors such as major concerts by popular artists like Jacky Cheung and G-Dragon, adding unexpected momentum even during a typically slow season.
The sustainability of Macau's GGR is closely tied to China's economic vitality. CBRE underscores the positive correlation between the GDP performance of China and Macau’s gaming revenue. In recent months, several stimulations by China, such as liquidity injections from the People’s Bank of China, improved retail sales metrics, and stock market upticks, have significantly bolstered consumer confidence and spending, thereby positively affecting Macau. These actions, aimed at mitigating the impacts of the U.S.-China trade tensions, include adjustments in the reserve ratio requirement (RRR) and reductions in benchmark lending rates to stimulate economic activity. Additionally, June saw the introduction of targeted measures designed to enhance consumption and boost confidence among Chinese consumers, factors that CBRE notes are imperative to sustaining short-term economic growth.
Looking ahead, CBRE analysts are observing careful economic developments in China that might influence Macau's gaming industry. The introduction of 19 targeted measures by China's central bank in June has been aimed at elevating consumption levels and boosting overall confidence, partially attributed to the temporary suspension of new tariffs initially projected by the U.S. The economic stability in China thus far and the upward trend in Macau GGR provide cautious optimism for the subsequent months. CBRE encourages continuous monitoring of economic stimuli measures and their anticipated positive effects on both domestic and regional economies. As such, Macau’s path to achieving sustained growth may hinge significantly on the long-term stability of China's economy, consumer confidence, and policy efficacy.
Source: Macau GGR growth sustainability depends on China economy: CBRE, GGRAsia, July 3, 2025.
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