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Night view of Macao on Jan 31, 2019. [Photo/VCG]

MACAO - The International Monetary Fund (IMF) forecasted that the economy of China"s Macao Special Administrative Region (SAR) will grow by 5.3 percent in 2019, the SAR"s monetary watchdog said on Tuesday.

Monetary Authority of Macao said an IMF delegation completed its 12-day visit to Macao SAR on Monday and preliminarily concluded macroeconomic and financial assessments of the SAR, saying the government"s efforts for diversification would be conducive to transforming the Macao economy into a less volatile and more sustainable model.

In its statement, the IMF delegation said the growth of Macao economy is projected at 5.3 percent in 2019 and is expected to remain solid over the medium term at about 5 percent.

The SAR government"s prudent macroeconomic policies and sufficient reserves had bolstered the economy"s resilience against global market shocks, the statement added.

The IMF delegation welcomed the initiatives of Monetary Authority of Macao in enhancing cross-border supervisory collaboration for reinforcing the ability to tackle financial risks. Meanwhile, the IMF staff emphasized that the linked exchange rate system between the pataca and the Hong Kong dollar had continued to serve Macao SAR well.

The linked exchange rate system should be supported by adequate foreign exchange reserves, sound financial system, appropriately prudent pubic finance and flexible labor market, it added.