In 2020, Macao skilled a extreme financial contraction because of stringent journey restrictions to the SAR as COVID-19 raged the world over. Complete customer arrivals plummeted 85.0 % to five.9 million. Service exports fell 74.9 %, and GDP contracted by 56.3 %.
Nonetheless, because the epidemic state of affairs in Macao and the mainland continued to stabilize, notably with the reinstatement of journey allow issuance to mainland residents in September final yr, the SAR, which has reported no regionally transmitted COVID-19 case for 375 steady days as of Thursday, has steadily regained recognition as a protected and high quality vacationer vacation spot.
A report launched Wednesday by the College of Macao (UM) forecast the SAR’s economic system to develop between 21.4 % and 33.5 % in 2021, relying on the restoration velocity of the variety of customer arrivals to the town. Exports of providers are anticipated to develop between 53.4 % and 82.1 % and the unemployment charge is projected to say no.
“Wanting ahead to 2021, so long as Macao and the mainland proceed to take care of a secure epidemic state of affairs, Macao’s economic system is anticipated to usher in a V-shaped restoration in contrast with 2020,” Feng mentioned.
The UM report famous that in 2021, with the event of vaccines and the beginning of the vaccination course of, Macao’s journey restrictions are anticipated to be steadily relaxed and the variety of vacationers to Macao is anticipated to extend. Nonetheless, the projected GDP in 2021 doesn’t but attain the extent of 2019, and the revenue of many residents has fallen.
Resulting from uncertainties within the pandemic, it’s nonetheless troublesome to precisely predict the outlook of Macao’s economic system this yr, Lao mentioned, including that it’s anticipated the entire yr’s GDP would get well to a minimum of 50 % of that in 2019.
Feng mentioned the epidemic has totally highlighted the urgency for Macao to develop a extra diversified economic system.
The SAR authorities’s coverage tackle for the fiscal yr 2021 talked about a number of measures to advertise a reasonably diversified economic system, reminiscent of trade re-positioning, the bond market and wealth administration, industrialization of conventional Chinese language drugs, cross-border e-commerce, and industrialization of the cultural and sport sectors.
“Macao may leverage its distinctive relations with the mainland and its benefits as a free market economic system to develop distinctive monetary capabilities reminiscent of RMB bond market, RMB-denominated securities market, wealth administration, and inexperienced finance,” Feng mentioned.
Macao may additionally actively seize alternatives within the integration of the Guangdong-Hong Kong-Macao Higher Bay Space, in addition to China’s cooperation with Portuguese-speaking international locations and international locations alongside the Belt and Highway Initiative, Feng added.
“The mixing of Macao into the event of the nation is the one method to keep its long-term prosperity and stability,” Lao mentioned.