The IMF concludes the 2022 Article IV Consultation with Macao SAR
The International Monetary Fund (IMF) concluded the 2022 Article IV Consultation with Macao Special Administrative Region (Macao SAR) and published its Staff Report today (13 April). The Mission affirms Macao SAR Government’s effective deployment of fiscal resources to soften the pandemic’s adverse impact on the economy. Meanwhile, it projects Macao’s economy to grow by 15.5% this year and 23.3% next year.
IMF Affirms Macao’s Policies on Pandemic Prevention and Economic Stabilisation
The IMF Mission conducted the 2022 IMF Article IV Consultation during 10-21 January, 2022 through virtual meetings with Macao SAR while the Staff Concluding Statement was published on 24 January, 2022. The Staff Report, a more comprehensive assessment of Macao SAR’s macroeconomic and financial positions, was released today (12 April, 2022, US time).
The IMF affirms Macao SAR Government’s strong policy response in containing the pandemic and the effective deployment of fiscal resources to soften its adverse impact on the economy. On economic outlook, the IMF expects domestic demand and the revival of visitor arrivals will support the economy to grow by 15.5% this year. Underpinned by increased investments related to new gaming concessions and Macao’s further integration with the Guangdong-Hong Kong-Macao Greater Bay Area, the IMF forecasts Macao SAR’s economic growth to accelerate to 23.3% next year while the long-term potential growth rate will be around 3.5%.
IMF Indicates Implementation of Adequate Economic Diversification Policies Will Increase Macao’s Economic Resilience
The IMF concurs Macao SAR’s economic diversification policies, which will enhance the economy’s resilience if implemented well. Meanwhile, it recommends a multi-dimensional approach in expanding the supply of skilled labour to advance economic diversification, increasing investments in information and communication technology infrastructure, promoting regional cooperation and streamlining business regulations.
The IMF recognises Macao SAR’s efforts on promoting modern financial services, including the establishment of the Central Securities Depository, the launch of Cross-boundary Wealth Management Connect Scheme and the coordination of financial institutions to launch “Simple Pay”. In the course of promoting financial-sector development, the IMF reminds that persistently strengthening the regulatory and supervisory framework of the financial sector is necessary to safeguard financial stability and integrity. Concurrently, the Macao SAR Government’s measures on anti-money laundering and combating financing of terrorism are welcomed and should be reinforced constantly.
The IMF reaffirms that the linked exchange rate system between the MOP and the HKD underpins Macao SAR’s economic and financial stability, attributable to the implementation of countercyclical fiscal policy as well as maintenance of adequate foreign exchange reserves, a robust banking sector and flexible labour market.
The Staff Report (https://www.imf.org/en/Publications/CR/Issues/2022/04/12/Peoples-Republic-of-China-Macao-Special-Administrative-Region-2022-Article-IV-Consultation-516538) and the relevant press release (https://www.imf.org/en/News/Articles/2022/04/12/pr22116-imf-executive-board-concludes-article-iv-consultation-macao-special-administrative-region) have been published in the IMF website. The next IMF Article IV Consultation with Macao SAR will take place on the standard 24-month cycle.
