The financial sector of Macao has weathered the tests arising from international financial market crises since the return of Macao to its Motherland. Although the challenges have been overcome thus far, upheavals are still prevailent in the international financial markets. There are uncertainties.
This could create further room for unwarranted discretionary decisions and may open the door to lax fiscal policies at a time of much needed fiscal consolidation. As regards macroeconomic surveillance, we have often emphasised that, in order to be effective, it should have a clear focus on a restricted number of indicators capturing macroeconomic imbalances per se.