IMF forecasts 53% drop in GDP for Macau

The International Monetary Fund has adjusted downwards its predictions for Macau’s economy due to the impact of the pandemic.

Macau.- The International Monetary Fund has revealed its predictions for national economies, adjusting downwards its forecast for Macau.

It April it had predicted the SARs GDP would contract by 29.6 per cent this year. It now forecases GDP will drop 53.5 per cent.

The scenario became more pessimistic due to the continued impact of the pandemic on the city. For 2021, the IMF now predicts a 23.9 per cent contraction, rather than the 32 per cent recovery it had predicted previously.

The IMF predicts that the annual rate of inflation in Macau will reach 1.7 per cent this year, and 1.8 per cent in 2021.

This year will end with an unemployment rate of 2.3 per cent, it predicted. The rate is currently 2.8 per cent, but 4 per cent for local residents. The IMF expects employment to drop to 2 per cent next year.

Meanwhile, Hong Kong is expected to see a 7.5 per cent contraction in GDP for 2020 and a 3.7 per cent recovery in 2021.

The IMF expects mainland China to be the only country in the world to see positive growth in 2020. It predicts China’s GDP will rise by 1.9 per cent this year, and 8.2 per cent in 2021.