WASHINGTON (Pakistan Point News / Sputnik - 24th January, 2022) Macao's gross domestic product (GDP) is projected to increase by 15 percent this year as a result of anticipated recovery of domestic demand and tourism, the International Monetary Fund (IMF) said in a report.
"Macao's GDP is projected to grow by 15 percent in 2022 driven by the gradual return of foreign tourists and the recovery of domestic demand," the report said.
The IMF projects that Macao's economic growth will accelerate to 23 percent in 2023 before gradually converging to its long-term potential of around 3.5 percent over the medium term, the report said.
"However, given the depth of the economic losses during the pandemic, the level of GDP is expected to surpass its pre-crisis level only in 2025. In the absence of rapid progress toward economic diversification, the current account balance is set to return to pre-pandemic levels as tourists return to Macao," the IMF said.
The strong fiscal support and solid positions of casino groups in Macao cushioned employment and consumption in the region. However, despite that, the sharp decline in activity and other factors related to the global pandemic made the economy vulnerable, the report said.
"Short-term risks to the outlook include a re-intensification of the COVID-19 pandemic and increase in Macao's financial sector stress," the report added.
The IMF called on local authorities to diversify the economy beyond the gaming industry in order to protect economic growth despite the challenges posed by the effects of the coronavirus pandemic measures, according to the report.
