IMF forecasts Macau's economy to grow 15.5% this year
People take photos of cherry blossoms in Macau on March 8, 2022.
The International Monetary Fund projected the economy of China's Macau Special Administrative Region to grow by 15.5 percent this year and 23.3 percent next year, the Monetary Authority of Macau said on Wednesday.
Affirming the Macau SAR government's policy response in containing COVID-19 and the effective deployment of fiscal resources to soften its adverse impact on the economy, an IMF report released on Wednesday expected domestic demand and the revival of visitor arrivals to support Macau's economy to grow by 15.5 percent this year, according to the SAR's monetary watchdog.
Underpinned by increased investments and Macau's further integration into the Guangdong-Hong Kong-Macau Greater Bay Area, the report forecast Macau's economic growth to accelerate to 23.3 percent next year and the long-term potential growth rate to be around 3.5 percent.
The IMF agreed that Macau's economic diversification policies will enhance the economy's resilience if implemented well. Meanwhile, the IMF recommended a multi-dimensional approach to expanding the supply of skilled labor to advance economic diversification, increasing investments in information and communication technology infrastructure, promoting regional cooperation and streamlining business regulations.
The IMF also recognized Macau's efforts in promoting modern financial services, reminding that persistently strengthening the regulatory and supervisory framework of the financial sector is necessary to safeguard financial stability and integrity.
The Macau SAR government's measures on anti-money laundering and combating financing of terrorism are welcomed and should be reinforced constantly, showed the report.
The IMF reaffirmed that the linked exchange rate system between the pataca and the Hong Kong dollar underpins Macau's economic and financial stability, attributable to the implementation of counter-cyclical fiscal policy as well as maintenance of adequate foreign exchange reserves, a robust banking sector, and a flexible labor market.
