The government of Macau revealed that the gaming destination's economy shrank by 13.3% in the first quarter of this year, but noted that a rebound may be coming soon.
In the first quarter of this year, Macau's Gross Domestic Product (GDP) fell by 13.3%, which is attributed to lower gaming and tourism revenues as well as China's economic slowdown. The contraction is the seventh straight for Macau, but also the smallest since the GDP fell 26.4% in the second quarter of last year. Gaming makes up more than 52% of Macau's GDP, and lower numbers of VIP gamblers from China have hurt the former Portuguese colony since a crackdown on Chinese corruption was enacted a few years back.
In March, Macau's gaming revenues fell 16.3% from the year prior to 18 billion patacas ($2.3 billion USD), making for 22 straight months of declines in the gaming industry.
Still, things may be looking up as the gaming industry looks to shift toward more middle-class players, which could offset the lower baccarat revenues being generated by VIP players.