Chart of the Week: Loss of gambling revenue devastates Macau’s economy in the first quarter

Refresh the chart in your browser | Edit the chart in Datastream

As more national accounts data gradually filter in, we are gaining greater clarity on the initial economic impact of the crisis. Obviously, countries imposing lockdowns that were stricter and longer-lasting suffered the largest economic hits in the first quarter. Economies where tourism makes up a large fraction of national income also stand to suffer as the crisis drags on. Gambling hub Macau offers us a unique insight into the magnitude of shock that some countries could be facing, with GDP having roughly halved in the first quarter of this year. It is highly likely that other small tourism-centric economies may be equally hard hit in the coming quarters; even after restrictions on cross-border travel are lifted, fear and loss of income may slow the rebound in international travel.