This paper mainly analyses Macao’s macro-economic environment and development of its principal industries in 2014，and provides forecast to the economic situation of the coming year.

The combining effects of the end of the Quantitative Easing （QE） programme by the US in 2014 and the anti-corruption campaign in mainland China deeply impacted on the spending behaviour of mainland Chinese visitors to Macao，especially on the VIP junkets in casinos. The gross revenue of gaming declined for seven consecutive months since the mid-2014. The GDP of Macao contracted by 2.1% and 17.2% respectively in the 3^rd and 4^thquarter，the first recessions over the past five years. The annual GDP of Macao contracted by 0.4% in 2014.

Looking ahead to 2015，it is predicted that the economy of Macao would continue the falling trend during the upper half of the year. However，as casino revenue is expected to stabilise at the middle of the year，economic growth would resume by the final quarter. The overall annual GDP in 2015 would either remain the same level as in 2014，or would grow in a lower single-digit percentage，possibly between 2% and 3%.