Macau Q2 GDP Growth Slows Sharply

Macau’s economy grew by 0.3% year-on-year in the second quarter of 2026, easing sharply from a 7.1% expansion in the previous period and confirming preliminary estimates. This marked the weakest growth since Q1 2025, as trade weighed on the economy, with imports of goods and services rising 10.9%, outpacing the 4.1% increase in exports. Overall exports of services slowed to 1.6% from 12.8%, weighed down by a decline in gaming services exports (-1.6% vs. 13.0%), while growth in other tourism services moderated to 3.7% from 17.5%. At the same time, domestic demand growth was weighed down by a slowdown in private consumption (2.7% vs. 3.4%) and changes in inventories (22.7% vs. 23.5%). Meanwhile, gross fixed capital formation rebounded to 4.0% from -21.0%, as investment activity strengthened in the private sector (8.1% vs. -24.3%) and the public sector (-2.9% vs. -14.8%).

Macau’s economy grew by 0.3% year-on-year in the second quarter of 2026, easing sharply from a 7.1% expansion in the previous quarter, according to preliminary estimates. Despite the slowdown, it marked the fifth consecutive quarter of economic growth, driven largely by a 7.2% increase in services exports amid a 13.9% year-on-year surge in visitor arrivals. On the domestic front, private consumption expenditure continued to grow steadily, rising 2.8% from a year earlier. Meanwhile, government spending fell 4.8%, while gross fixed capital formation declined sharply by 21.9%.

Macau's economy expanded 7.1% year-on-year in the first quarter of 2026, easing from 7.6% growth in the last quarter of 2025 and confirming preliminary estimates. The expansion marked the fourth consecutive quarter of economic growth, supported primarily by strong external demand and a 13.7% increase in tourist arrivals, benefiting from the Lunar New Year holiday and a series of festive activities. Overall export services increased 12.8%, supported by gaming services exports (13%) and other tourism services (17.5%). Meanwhile, domestic demand growth was supported by strong growth in private consumption (3.4%), imports (4%) and changes in inventory (23.5%). However, gross fixed capital formation contracted sharply by 21.0%, reflecting weaker investment activity across both the private sector (-33.8%) and the public sector (-11.4%).