Macau’s economic outlook clouded by high exposure to climate-related shocks and uncertainties over new gambling laws, IMF says

Macau’s high exposure to climate-related shocks and uncertainties clouding over the new gambling law will add risks to the city’s economic prospects, according to the International Monetary Fund (IMF).

The city has sufficient policy buffers to effectively steer the economy, which is expected to grow by 15.5 per cent this year, and a faster pace of growth in 2023, but public investments and prevention plans should be increased to deal with the impact of the climate change, according to Ara Stepanyan, IMF Mission Chief for Macau.

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“Macau is exposed to rising sea level, [at a rate that] has increased in the past 20 years to about 2.4mm per year,” Stepanyan wrote in a statement to the Post. “It is expected that the degree and frequency of climate-related disasters such as cyclones and coastal floods will increase. Some critical infrastructures are at risk of being below the annual flood level within 10 years.”

The government has formulated environmental protection and disaster prevention plans in a number of areas to close the infrastructure gaps for disaster prevention and mitigation.

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“The government has established storm surge and rainstorm warning systems. Enhancing these systems further will improve the government’s capacity to deal with the impact of extreme weather and climate change, helping protect the safety of citizens and their property,” said Stepanyan.