Citing sound fiscal policy, Fitch Ratings maintained Macau’s ‘AA’ Long-Term Foreign-Currency Issue Default Rating going into 2019.

Even though demand in the gaming sector, on which the Special Administrative Region (SAR) is reliant on, is expected to temper, with uncertainty surrounding the Chinese economy, the ratings agency was encouraged by a projected budget surplus of 9.5% of GDP for 2018, down only 0.5% from the year before.

For 2019, a budget surplus of 9.4% was forecast, on the assumption of a “more optimistic outlook” for gaming revenues to grow by “about 5%” next year.

According to Fitch, the Macau government’s target 2019 central budget surplus of MOP18 billion ($2.23 billion), or 4% of GDP, was “quite conservative,” and this suggested a continued stable fiscal situation.