MACAO, May 11 (Xinhua) -- The economic growth rate of China's Macao Special Administrative Region (SAR) was projected at 4.3 percent in 2019 and about 4.0 percent over the medium term, the SAR's monetary watchdog said on Saturday, quoting a report from the International Monetary Fund (IMF).
Monetary Authority of Macao said IMF concluded the 2019 Article IV Consultation with Macao SAR and published its staff report on Friday.
The report affirms Macao's strong fiscal and external financial positions, credible linked exchange rate system, sound financial system, wide-ranging plans of economic diversification and prudent macroeconomic policies.
On economic outlook, the IMF mission expects the SAR's economy to achieve relatively stable and solid growth over the medium term, driven by tourism and continued diversification efforts. Economic growth rate is projected at 4.3 percent in 2019 and about 4.0 percent over the medium term.
The mission also recognizes the prudent macroeconomic policies of the SAR government with zero gross debt, which has endowed Macao with large fiscal and external financial buffers. These buffers will continuously anchor the stability of the economy and reduce external vulnerabilities emanating from global economic uncertainties.
On the external financial front, the SAR remains a net foreign creditor, driven by its sizable current account surplus and reserves as well as the external position of its banking sector. Macao's ample net foreign assets will underpin its medium-term external solvency.
The report mentions Macao's sound financial sector and welcomes the progress in strengthening its anti-money laundering and combating financing of terrorism framework. The financial soundness indicators regarding asset quality, earnings, and liquidity remain robust.
The current macroprudential regulations with respect to the real estate market appear broadly appropriate while systemic risks are largely contained, it added.
In addition, the IMF welcomes the incentives of the Monetary Authority of Macao in strengthening cross-border supervisory cooperation, which are deemed to facilitate the prevention of regulatory arbitrage and avoidance.
