Macao’s financial reserves gained close to eight billion patacas in March to stand at 569.7 billion patacas, according to figures from the Monetary Authority of Macau cited by the Lusa news agency.
The total increase in the first quarter of 2023 was 10.5 billion patacas, Lusa said. However, reserves remain far below the record 669.7 billion patacas recorded in February 2021.
Reserves ended 2022 at 559.2 billion patacas – the lowest they had been since January 2019, as a result of “the geopolitical crisis, the blockade of the global supply chain caused by the epidemic and the significant rise in interest rates” officials said.
[See more: Macao’s GDP jumps by nearly 39 percent]
Despite the last quarter’s strong performance, Chief Executive Ho Iat Seng says the administration will be prudent in preparing the budget for the 2024 fiscal year, and stresses that Macao is still recovering from the economic crisis caused by the Covid-19 pandemic.
Under the current budget, the Macao government will reportedly generate 105.17 billion patacas in revenue against expenditure of 104.48 billion patacas.
The territory has a solid reputation for financial prudence. In March, ratings agency Fitch affirmed Macao’s long-term foreign currency default risk at AA, praising Macao’s “exceptionally strong public and external finances”.
