Prof. Davis Fong
Prof. Henry Lei
External Demand Drives Macao’s Recovery
On August 5, 2025, Prof. Davis Fong, Director of Institute for the Study of Commercial Gaming (ISCG) and advisor to the Macao Economy team of the Asia-Pacific Academy of Economics and Management (APAEM) at the University of Macau (UM), and Prof. Henry Lei, Associate Professor at the Faculty of Business Administration (FBA) of UM and Member of the Macao Economy team at APAEM, co-authored an article in Macao Daily News analyzing how external demand is driving Macao’s economic recovery.
Macao’s economy has shown strong signs of recovery, with its second-quarter gross domestic product (GDP) recording a year-on-year real growth of 5.1%, reaching 88% of the scale during the same period in 2019. Scholars predict an annual GDP growth of 3% to 5%, with the second half of the year expected to outperform the first. The recovery has been primarily fueled by external demand, such as service exports, while gaming revenue has also maintained a sustained upward trend.
Prof. Henry Lei noted that the economic recovery has begun to take shape, reversing the contraction seen in the first quarter. Private consumption and government investment remain stable, and the stabilization of the property market is expected to boost related industries. If the U.S. implements interest rate cuts, it could help stimulate rigid housing demand and further stabilize the property market. He suggested that the government, chambers of commerce, and enterprises work together to attract tourists into local communities, utilizing the resources of the six major districts and the IP economy to extend tourism benefits to non-gaming businesses and the community economy.
Prof. Davis Fong stated that Macao’s tourism industry is recovering strongly, with visitor numbers expected to surpass 2019 levels by the end of the year. Non-gaming consumption growth has already exceeded that of gaming consumption, reflecting new consumption trends. He expressed optimism about gaming revenue in the second half of the year, predicting that the monthly average could stabilize at over MOP 20 billion. He emphasized that the closure of satellite casinos has not affected overall gaming revenue but has instead helped reduce operational costs and enhance comprehensive benefits.
As the economies of Macao’s key tourist source markets stabilize and disposable incomes rise, both scholars are optimistic about the economic outlook for the second half of the year, unanimously believing that the recovery momentum will continue to strengthen.
For further details, please read the original news via this link.