The International Monetary Fund (IMF) highlighted the strong recovery of city’s economy post-pandemic and agreed that the implementation of effective economic diversification policies would “strengthen the SAR’s economic resilience.”
The IMF Mission carried out its Article IV Consultation for the SAR from February 21 to March 6 this year, of which the report has been made public yesterday .
With a sustained recovery in the tourism sector and a rebound in private investment, the IMF forecasted a 13.9% growth for Macau SAR’s economy this year, with economic output expected to return to pre-pandemic levels in 2025.
Furthermore, the IMF anticipated that Macau’s economic growth would stabilize at a long-term potential of 3.0%, driven by the SAR government’s efforts to promote appropriate economic diversification, non-gaming tourism development, expansion of international markets, and accelerated integration into the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).
Meanwhile, the IMF noted the significant progress in digitalization within Macau’s economy. The institution recommended that the Macau increase public investment in areas such as education, training, healthcare, basic research, and climate-resilient infrastructure, as well as support the digital transformation of small- and medium-sized enterprises to enhance the city’s productivity and resilience to economic shocks.
Additionally, the IMF advised the government to take advantage of opportunities from GBA integration to advance the policy goals of economic diversification in the SAR.
On the front of promoting modern financial services, the IMF said that the reformulated Financial System Act (FSA) had enhanced the flexibility of the SAR’s legal framework for financial regulation, “laying the legal basis for innovation and modernisation of the financial sector.”
According to the institution’s feature analysis, “Macau’s banking system remained sound while sufficient capital and liquidity buffers would buttress the banking system’s resilience to withstand external shocks.” Staff Reporter
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