Macau’s economy demonstrated a modest expansion in the second quarter of 2026, with its gross domestic product (GDP) increasing by 0.3 percent year-on-year, reaching MOP102.33 billion (approximately US$12.67 billion), according to a report released by the city’s Statistics and Census Bureau. This growth represents a notable deceleration from the more robust 7.1 percent GDP growth observed in the first quarter of the year.
Despite this slowdown in sequential quarterly growth, the economy overall showed signs of steady progress in the first half of the year, driven largely by an uptick in service exports linked to increased visitor arrivals.
Strong Service Exports Amid Visitor Increase
During the first half of 2026, Macau's economy was bolstered by a considerable rise in service exports, which grew by 7.2 percent year-on-year. This growth was significantly aided by a 9.0-percent increase in visitor arrivals. The total GDP for the first half of the year was reported to be MOP209.89 billion, reflecting a 3.7 percent increase over the same period in the previous year. The overall economic output reached 89.1 percent of the levels seen in the same timeframe of 2019, prior to the disruption caused by the Covid-19 pandemic.
According to the Monetary Authority of Macao (AMCM), net service exports played a substantial role, contributing 11.0 percentage points to Macau’s economic growth in the first quarter, underscoring the significance of Macau’s tourism and gaming industries, which are counted as service exports in GDP calculations.
Future Outlook and Economic Challenges
The International Monetary Fund (IMF) has projected that Macau’s GDP will grow by 3.3 percent for the year 2026, a forecast tempered by weaker gaming activity and prolonged higher interest rates. Looking ahead, the IMF anticipates that growth will decelerate to around 3 percent in the medium term, aligning with expected slowdowns in China and Hong Kong. Nevertheless, this anticipated slowdown in economic growth could be mitigated by an increase in investment growth, particularly investments by gaming concessionaires into non-gaming sectors.
The IMF’s projections shed light on the challenges and opportunities that lie ahead for Macau’s economy as it navigates both external economic pressures and internal strategic shifts.
Source: Macau 2Q GDP flat from a year earlier, slows sequentially, GGRAsia, July 31, 2026.
Posted by Wizard
Jul 31 2026
Jul 31 2026
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