Macau’s economy is expected to grow at 4.3% in 2019, with solid growth in the mid-term with an average of 4.2%, according to an assessment by the International Monetary Fund’s Board of Directors.
The main driver of expected growth over the medium term is tourism, with non-VIP visitor tourism expected to continue to expand, with moderate growth in the VIP player segment in line with diversification efforts by the authorities to create more stable sources of growth.
The IMF kept its growth forecast unchanged for the Macau economy for 2019, as announced last February at 4.3%, when the World Economic Forecast report was released, as well as for the year 2020 with a rate of 4.2%.
The economic growth forecast for this year in both that report and the notice on the conclusion of the 2019 Article 4 consultation is a drop of 40 basis points from the 4.7% growth achieved in 2018.
In the document now released, the IMF directors praised Macau’s macroeconomic performance over the years, translating into one of the highest per capita incomes in the world, with zero government debt levels.
They pointed out that prudent macroeconomic policies and high reserves provide strong buffers against shocks in the Macau SAR, although they pointed out that the risks to growth are on a downward trajectory, supporting the authorities’ efforts to achieve economic diversification, and ensure economic growth.
The IMF board agreed that diversification policies should be based on a careful study of the comparative advantages of Macau, as well as agreeing on the principle of diversification towards mass tourism and non-gambling tourism and stimulating the development of the financial sector. (Macauhub)