Daily Times

MACAO: The International Monetary Fund (IMF) revised its forecast about Macao’s 2017 GDP growth rate to 2.8 percent from its previous forecast of 0.2 percent, after concluding the 2016 Article IV Consultation with the special administrative region, the SAR monetary watchdog said on Wednesday.

Monetary Authority of Macao (MAM) issued an statement saying that the IMF mission commended Macao’s strengthening fiscal and external financial positions, credible linked exchange rate system, strong financial system, and remarkable macroeconomic resilience.

The SAR is entering a transition to a more diversified economic model from a position of strength with large fiscal and external buffers, the statement added.

According to MAM, after the consultation IMF published a report which indicates that the SAR economy had bottomed out and revised its forecast for 2017 to 2.8 percent from its previous forecast of 0.2 percent.

MAM said the IMF mission concluded that Macao SAR is well positioned to achieve relatively stable growth of low to mid-single digits in the medium term.

The mission also estimated that Macao’s net foreign assets were equivalent to about 280 percent of GDP at end of 2015, and therefore concluded that these buffers would continue to underpin Macao for a transition to a new and more diversified economic model.

Secretary for economy and finance of Macao SAR government Leong Vai Tac said he is happy to see that the IMF mission recognized Macao’s resilience against economic fluctuation, and he is confident about diversification of SAR economy and industries.

Under Article IV of the IMF’s Articles of Agreement, the fund holds bilateral macroeconomic discussions with members on a regular basis. A staff team of IMF visits the member country or region, collects economic and financial information, and discusses with its officials the economic developments and policies.