Macau, China, March 23, 2026 (Lusa) – Macau’s Secretary for Economy and Finance warned on Monday of the risks posed by global instability and its impact on the local economy.
Tai Kin Ip said during a seminar organised by the Macau Chamber of Commerce that "the world is witnessing shifts unseen in a century, developing at an accelerated pace, with frequent geopolitical conflicts affecting the stability of the global supply chain, and a slow global economic recovery".
Earlier this month, Macau’s Chief Executive, Sam Hou Fai, highlighted "supply chain disruptions" and other challenges arising from recent international conflicts, such as the war in the Middle East, which have hindered the city’s economic development.
According to Tai Kin Ip, as a "small, highly open" economy, Macau Special Administrative Region (MSAR) will not remain immune to these external shocks.
In recent years, average spending per visitor has declined, with consumption patterns shifting from “shopping-oriented” to a greater focus on the travel experience, placing new demands on local businesses.
Despite the challenges, Tai said that in 2025 Macau welcomed 40.069 million visitors, a year-on-year increase of 14.7%, and recorded real Gross Domestic Product (GDP) growth of 4.7%.
The unemployment rate remained low at 2.5%, while annual inflation stood at just 0.33%.
However, the credit rating agency Fitch has predicted that the territory’s GDP growth will slow to 4% in 2026, as “weaker” economic conditions will “weigh increasingly on Chinese tourists”, the majority of the city's visitors.
Macau has welcomed 10 million visitors since the start of the year, 75% of whom came from mainland China. Local authorities expect to welcome 41 million visitors this year, one million more than in 2025.
China has set, in these meetings, a GDP growth target of 4.5% to 5% for 2026, the lowest since 1991, focusing on stability and quality over speed, prioritising strategic investment, technology and domestic consumption.
Mainland China’s primary stock exchanges closed on Monday with sharp falls of up to 3.76%, together with declines across Asian markets following an escalation of the conflict in the Middle East and rising oil prices.
Markets reacted to the intensifying crisis after Iran reiterated its threat to close the Strait of Hormuz, a strategic chokepoint for global energy transport.
The Strait of Hormuz, through which around 20% of the world’s oil passes, is also crucial for China, as approximately 45% of its crude oil imports transit via this route.
Macau’s Secretary for Economy said that, amidst this economic slowdown, the MSAR government would continue to support small and medium-sized enterprises, considered "the cornerstone of Macau’s economy", through digitalisation programmes, brand certification, and measures to boost consumption in local communities.
He added that economic diversification remains a priority under the 15th National Five-Year Plan and the 3rd MSAR Five-Year Plan, focusing on areas such as tourism, leisure, traditional Chinese medicine, finance, cutting-edge technology, conventions and exhibitions.
NCM/MYAL // ADB.
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