Lisbon, Portugal, 9 Jan – Macau’s economic situation is strong due to a foreign trade surplus and high reserves of foreign currency, but the territory is over-dependent on its gaming and tourism sectors, according to financial ratings agency Moody’s.
In its annual review of Macau, Moody’s gives the Chinese Special Administrative Region an A1 rating for credit capacities of its national currency and foreign exchange reserves.
Notable public sector surpluses in recent years have also strengthened Macau’s economy, says Moody’s, although the Chinese enclave city has few other economic drivers besides gaming and tourism.
Macau’s economic growth in 2005 is estimated at 7 percent, compared to 28.6 percent in the previous year, notes Moody’s.
With state coffers continuing to fill with gaming receipts it is clear that the Macau government will not have to issue debt for some time, adds Moody’s. (macauhub)