People’s Republic of China—Macao Special Administrative Region: 2022 Article IV Consultation Discussions

Download or read book People’s Republic of China—Macao Special Administrative Region: 2022 Article IV Consultation Discussions written by International Monetary and published by International Monetary Fund. This book was released on 2022-04-12 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: Macao SAR’s recovery is expected to continue in 2022, but it will take several years before the economy returns to its pre-crisis level. Although strong fiscal support and the financial strength of Macao SAR’s casino groups cushioned employment and consumption, the sharp contraction in activity exposed Macao SAR’s vulnerability to external forces affecting the inflow of tourists. Short-term risks to the outlook include a re-intensification of the COVID-19 pandemic and an increase in Macao SAR’s financial sector stress. The heavy impact of the pandemic on Macao SAR’s growth highlights the need to diversify the economy beyond the gaming industry. The high exposure to climate-related shocks poses long-term concerns.