In 1998, with the existing structural imbalance yet to be solved and under the influence of the world economic slowdown trigged by the Asian financial crisis, Macau's overall economy continued to slide and the situation became even more severe, relaying the trend of the previous five years. The tourist industry operated with difficulties, the revenue from the gambling industry declined. The visitors' consumption power apparently slumped. This directly affected the revenues from the related businesses.
Many stores cut prices to promote sales.
Some hot industries closely related to the tourist industry, such as gold and jeweler's shops, had fewer customers, with some even forced to close down. The hotel industry also faced difficulties. Furthermore, the revenue from gambling decreased considerably. If things do not improve, the government's gambling tax receipts for the whole year will fall by 800 million Pataca. The total value of the external trade declined and the export competitiveness weakened Owning to the strong Pataca relative to the currencies of South-east Asian countries because of HK dollar's peg, the competitiveness of the export processing industry further weakened.