Multilateral lender International Monetary Fund (IMF) has backed the move of Macau government to diversify its local economy.

Geoff Gottlieb, head of the IMF team that visited the former Portuguese colony last week, agrees with the government’s decision to prioritize more mass-market gaming and to focus more on non-gaming tourism products in the city.

Macau’s overall medium term outlook remains strong despite seeing a contraction in its economy this year, according to the IMF. He added that the city is well positioned for stable and sustainable growth in the low to mid-single digits.

“With respect to growth, the authorities’ five-year plan correctly identifies the importance of diversifying from VIP to mass-market gaming; from gaming to non-gaming tourism; and from tourism to financial services exports,” Gottlieb said in a statement. “Although the economy will contract for a third consecutive year in 2016, external demand has begun to recover with three consecutive months of positive gaming revenue growth.”