The International Monetary Fund (IMF) has praised the government’s attempts to diversify “toward an economic model with less volatile and more sustainable sources of income.”
The comments were part of a preliminary report on Macau’s macroeconomic status, following a 12-day visit to Macau from November 3 to November 14.
“With respect to growth, the authorities’ five-year plan correctly identifies the importance of diversifying from VIP to mass-market gaming; from gaming to non-gaming tourism; and from tourism to financial services exports,” said Geoff Gottlieb, head of the IMF team.
“The Macau SAR economy has started an important transition. Developments in mainland China have triggered a large and likely permanent reduction in external demand from high-net worth visitors,” he wrote.
Similar to recent remarks made by analysts, Gottlieb notes the gaming hub is showing signs of recovery.
“Though the [Macau] economy will contract for a third consecutive year in 2016, external demand has begun to recover, with three consecutive months of positive gaming revenue growth.”