The IMF’s World Economic Outlook Publishes Macao SAR’s Macroeconomic Forecasts for the First Time

The International Monetary Fund (IMF) published its latest World Economic Outlook report, which forecast the global economy to grow 3.2% and 3.5% for 2016 and 2017, respectively, lowered by 0.2 percentage points and 0.1 percentage point from its forecasts made in January 2016. Meanwhile, this report, for the first time, covered the forecasts of Macao SAR’s major macroeconomic indicators. The IMF report indicated that the pace of the global economic recovery this year would further slow due to increased volatility in financial markets and weakened demand in large commodity-exporting countries. In addition, the global economic growth would remain imbalanced and the emerging-market and developing economies would lead drive and help speed up the pace of the global economic recovery. The IMF forecast the advanced economies to grow 1.9% and 2.0%, respectively, for 2016 and 2017. Meanwhile, it forecast the emerging-market and developing economies to grow 4.1% and 4.6%, respectively. The IMF forecast Macao SAR’s economy to contract 7.2% for 2016 and to resume a positive growth of 0.7% for 2017. Furthermore, the international organisation forecast Macao SAR’s inflation to linger around 3.0% and its unemployment rate to stay at a low level of around 2.0%. On public finance, the IMF forecast the SAR Government’s integrated fiscal account to remain in surplus in this year and next.