The economy of Macau shrank 1.8 percent year-on-year in the second quarter of 2019, following a 3.2 percent contraction in the previous quarter. That was the second straight quarter economic contraction, mainly due to a decline in fixed investment (-25 percent vs -31.7 percent in Q1), owing a 30.1 percent fall in construction investment, equipment investment, however, rose by 9.1 percent. In addition, the completion of the Macau boundary crossing area of the Hong Kong-Zhuhai-Macau Bridge led to a 51.6 percent plunge in public construction investment. Also, total exports continued to decline (-0.3 percent vs -0.4 percent), while imports dropped at a faster (-4.6 percent vs -5.0 percent). On the other hand, private consumption growth slightly accelerated (2.2 percent vs 2.1 percent) while government spending grew faster (5.7 percent vs 4.1 percent). For the first half of the year, the economy shrank by 2.5 percent compared with the same period of 2018.. GDP Annual Growth Rate in Macau averaged 8.54 percent from 2002 until 2019, reaching an all time high of 54.30 percent in the second quarter of 2004 and a record low of -24.60 percent in the second quarter of 2015.
GDP Annual Growth Rate in Macau is expected to be 2.70 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Annual Growth Rate in Macau to stand at 3.10 in 12 months time. In the long-term, the Macau GDP Annual Growth Rate is projected to trend around 3.60 percent in 2020, according to our econometric models.