Macao reports economic contraction

Central government's anti-corruption campaign takes toll on gambling city

The economic growth of the Chinese gambling hub of Macao may slow dramatically to 2 to 3 percent this year, a senior Macao official said, after the city reported its first year-on-year economic contraction since 2009 in the third quarter as President Xi Jinping tackles corruption and excessive spending of public funds.

However, officials and analysts remained optimistic about the city's long-term growth. They noted that industries other than gambling are growing, and the low unemployment rate of 1.7 percent and abundant government reserves guarantee a stable society.