CHIPS DOWN

China’s crackdown on corruption is killing Macau’s economy

Time for a new market.
Time for a new market.
Image: Reuters/Tyrone Siu
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The cards seem stacked against China’s semi-autonomous gambling capital.

Macau’s government reported that its GDP shrank (link in Chinese) in the three months to June by more than 26% compared with the same quarter last year.

The report, highlighted by the Financial Times (paywall), shows the pressure that China’s ongoing corruption crackdown is exerting on the territory:

The decline in GDP reflects a Beijing-led clampdown on corruption, which has scared off high-rollers. In February, gaming revenue fell by nearly half, the most on record. Since then every month has seen a year-on-year decline of 34% or more.