Page 190 - AmCham South China 2026 Special Report on the State of Business in South China

Macau
The economy
is located on the southeastern
Macau coast of China, along the
west bank of the Pearl River estuary. It is 60 km
from Hong Kong and 145 km from Guangzhou,
and shares a border with Zhuhai to the north.
With a population of 683,100 in an area of 32.9
2
km , it is the most densely populated region in
the world. Macau was returned to China from
Portuguese administration in 1999. Its unique
strength lies in its role as a bridge between China
and Portuguese-speaking countries and as a key
node in the Belt and Road Initiative, making it
instrumental in China¡¯s high-level opening up.
The local government has implemented a series
of policy measures to sustain domestic demand
in recent years. These include revitalization
efforts in older districts and consumption reward
programs designed to stimulate local spending,
which are expected to reinforce Macau¡¯s recovery
trajectory despite global uncertainties. In 2024,
Macau¡¯s GDP rose 8.8% YoY, to MOP403.31
billion (US$50.35 billion). Services exports grew
by 9.2% YoY, driven by a 23.8% increase in visitor
arrivals. Exports of gaming and tourism services
saw robust growth, supported by a relatively
high comparison base in the previous year.
Private consumption expenditure increased by
4.9% YoY, reflecting the continued recovery of
local economic activities. After a contraction in
Q1 2025, Macau¡¯s GDP rebounded with 5.1%
YoY growth in Q2, reaching MOP100.38 billion
(US$12.6 billion) 161 .
Market highlights
Diversification and regional integration remain
priorities for Macau. The government is actively
promoting the construction of the Macau Science
161 Statistics and Census Service of Macao, https:// 163 Government site of Macau, https://www.gov.mo/
www.dsec.gov.mo/en-US/Statistic?id=9
190
and Technology Research Industrial Park , which
162
covers approximately 240,000 m . This flagship
2
project aims to advance appropriate economic
diversification through a full-chain development
model and focuses on attracting businesses in four
key sectors: integrated circuits, biomedicine, digital
technology and aerospace technology.
Strengthening its ¡°Tourism+¡± strategy, Macau
is integrating gastronomy, cultural heritage,
health and wellness, sports and education into its
offerings. In H1 2025, Macau¡¯s tourism grew 15%
to 19.2 million visitors , ranking sixth in Asia
163
Pacific. Growth was driven mainly by inflows from
the Chinese mainland and rising demand from
Southeast Asian. Sustainability and technology are
central themes, with AI-driven trip planning and low-
carbon travel expected to reshape future demand.
Financial cooperation with Portuguese- and
Spanish-speaking countries has already delivered
results. The government actively conducts joint
investment promotion focusing on key industries
and showcases the development opportunities of
¡°Macau + Hengqin¡± to the global market. A regular
currency swap mechanism is expected to be
introduced, along with a new ¡°convenient renminbi
funding arrangement¡± offering longer-term
renminbi financing. The Investment Funds Law,
which took effect on 1 January 2026, is a cornerstone
of Macau¡¯s ¡°1+4¡± economic diversification strategy.
It aims to reduce reliance on gaming by fostering
new growth sectors, including modern finance,
big health, high technology, conventions and
exhibitions and culture and sports. Targeted
tax incentives will be introduced to attract high-
quality fund management entities to Macau. The
government is also advancing work on establishing
government industry funds and guidance funds,
162 Government site of Macau, https://www.gov.mo/
en/news/374473/
en/news/363215/
191