ZCZC
BCN-19
MACAO-ECONOMY-IMF
Macao economy to grow by 4.3 pct in 2019: IMF
MACAO, May 11, 2019 (BSS/Xinhua) – The economic growth rate of China’s
Macao Special Administrative Region (SAR) was projected at 4.3 percent in
2019 and about 4.0 percent over the medium term, the SAR’s monetary watchdog
said on Saturday, quoting a report from the International Monetary Fund
(IMF).
Monetary Authority of Macao said IMF concluded the 2019 Article IV
Consultation with Macao SAR and published its staff report on Friday.
The report affirms Macao’s strong fiscal and external financial positions,
credible linked exchange rate system, sound financial system, wide-ranging
plans of economic diversification and prudent macroeconomic policies.
On economic outlook, the IMF mission expects the SAR’s economy to achieve
relatively stable and solid growth over the medium term, driven by tourism
and continued diversification efforts. Economic growth rate is projected at
4.3 percent in 2019 and about 4.0 percent over the medium term.
The mission also recognizes the prudent macroeconomic policies of the SAR
government with zero gross debt, which has endowed Macao with large fiscal
and external financial buffers. These buffers will continuously anchor the
stability of the economy and reduce external vulnerabilities emanating from
global economic uncertainties.
On the external financial front, the SAR remains a net foreign creditor,
driven by its sizable current account surplus and reserves as well as the
external position of its banking sector. Macao’s ample net foreign assets
will underpin its medium-term external solvency.
The report mentions Macao’s sound financial sector and welcomes the
progress in strengthening its anti-money laundering and combating financing
of terrorism framework. The financial soundness indicators regarding asset
quality, earnings, and liquidity remain robust.
The current macroprudential regulations with respect to the real estate
market appear broadly appropriate while systemic risks are largely contained,
it added.
In addition, the IMF welcomes the incentives of the Monetary Authority of
Macao in strengthening cross-border supervisory cooperation, which are deemed
to facilitate the prevention of regulatory arbitrage and avoidance.
BSS/XINHUA/HR/1450