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Author International Monetary Fund, author

Title People's republic of China-Macao special administrative region : 2014 Article IV consultation-staff report ; press release ; and statement by the Executive Director for Macao SAR / International Monetary Fund
Published Washington, District of Columbia : International Monetary Fund, 2014
Online access available from:
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Description 1 online resource (60 pages) : illustrations (some color), charts
Series IMF Country Report ; 14/229
IMF country report. 14/229
Contents Cover; CONTENTS; CONTEXT; OUTLOOK AND RISKS; CALIBRATING MACROECONOMIC POLICIES; BOLSTERING FINANCIAL SOUNDNESS; ENSURING EXTERNAL STABILITY; SUSTAINING FISCAL PRUDENCE; DIVERSIFYING THE ECONOMY; STAFF APPRAISAL; BOXES; 1. Is There a Housing Bubble in Macao SAR?; 2. Macroprudential Policies: What Can Asian Experiences Imply for Macao SAR?; 3. Progress on Key Recommendations of 2011 FSAP Assessment; 4. How Vulnerable is Macao SAR to Financial Spillovers?; 5. External Sector Assessment; 6. Sovereign Wealth Funds: What Could International Experience Imply for Macao SAR?; FIGURES
1. Key Economic Features2. External Position; 3. Banking Sector Developments; 4. Macao SAR's Macroeconomic Performance: Does the Exchange Rate Regime Matter?; 5. Fiscal Outlook; TABLES; 1. Selected Economic and Financial Indicators; 2. Medium-Term Macroeconomic Framework; 3. Central Government Accounts; 4. Selected Financial Soundness Indicators; 5. Balance of Payments; 6. Indicators of External Vulnerability; APPENDICES; I. Risk Assessment Matrix; II. The Gaming Industry in Macao SAR; III. External Sector Debt Sustainability Analysis; CONTENTS; FUND RELATIONS; STATISTICAL ISSUES
Summary KEY MESSAGES Setting. Discussions took place for the first time since the handover of Macao SAR from Portugal to China in 1999. Prudent macroeconomic management has underpinned rapid development in the territory, which is now the world's largest gaming center. As a small, open and tourism-dependent economy, Macao SAR is currently also benefiting from loose global monetary conditions and a Mainland-related boom. Outlook and risks. Growth should stay strong over the next few years at 8-10 percent buoyed by gaming exports and investment, with inflation remaining around 5-5 1/2 percent. However, the economy is vulnerable to external shocks, in particular a slowdown in tourism, due to shocks in the Mainland or Hong Kong SAR or other setbacks to the global recovery. The buoyant property market could also correct if demand fundamentals shift or interest rates rise abruptly with the withdrawal of unconventional monetary policy abroad. Macroeconomic policies. The policy stance is appropriate, with scope for further tightening of macroprudential policies should property prices continue to rise sharply. If downside risks materialize, targeted fiscal stimulus should be used to buttress growth. In the event of a severe property downturn, some countervailing measures could be cautiously unwound. The currency board is the best arrangement for Macao SAR. Financial stability. Important progress has been made in strengthening financial stability in line with the 2011 FSAP recommendations. Prudential measures should focus on managing potential credit and liquidity risks from a gaming slowdown and the property sector, as well as spillovers from shocks in the Mainland and Hong Kong SAR. Longer term challenges. Looking further ahead, Macao SAR's public finances face a moderation in gaming revenues juxtaposed against spending needs from population aging. A sovereign wealth fund to manage part of the territory's fiscal reserves and medium-term budgeting could therefore be useful. As the gaming sector matures, economic diversification toward other services will be key for stable growth
Notes Online resource; title from PDF title page (ebrary, viewed September 18, 2014)
Subject International Monetary Fund -- China -- Macau.
Economic development.
Macau (China : Special Administrative Region) -- Economic conditions.
Form Electronic book
ISBN 1498301053 (e-book)
9781498301053 (e-book)