The Macau economy is expected to grow again in 2017, at a rate of 0.7 percent, after contracting 7.2 percent this year. This year’s contraction is already lower than in 2015 when it totalled 20.3 percent, according to the latest forecasts from the International Monetary Fund (IMF).
The IMF, which for the first time includes in its “World Economic Outlook” economic forecasts for Macau, is more conservative than the Economist Intelligence Unit (EIU), which in March projected real economic growth for Macau in 2017 of 4.6 percent.
The IMF is also conservative in terms of growth projected for this year, predicting a contraction of 7.2 percent, several percentage points more than the 2.7 percent presented by the EIU in its report released in March.
The report released by the International Monetary Fund predicts the inflation rate will be fall this year and in 2017 to 3.0 percent, a decrease of 1.6 percentage points compared 2014. The unemployment rate is projected to increase by 20 basis points to 2.0 percent both this year and in 2017, after 1.8 percent in 2015.
The integrated financial accounts of the Macau government is expected to remain positive this year and next, with rates of 20 percent and 17.2 percent of gross domestic product, respectively.
Globally, the IMF has lowered the economic growth forecast to 3.2 percent this year and 3.5 percent in 2017, with downturns of 20 and 10 basis points respectively compared to the figure in the report released in January. (macauhub/MO)