activity will depend on the structure of the economy and the value added weight of the tourism and leisure activities, which are affected the most ; the scope and effectiveness of policy measures ; the success in addressing the health crisis ; and the subsequent lifting of containment measures. these forecasts are subject to considerable downside risks and uncertainties. the greatest risk is associated with the possibility of a second wave of the pandemic, which will delay the recovery. moreover, it could lead to long - lasting effects, such as widespread corporate insolvencies, higher unemployment and a slower recovery, which, in turn, are expected to have a negative impact on banks ’ balance sheets. on the upside, the development of an effective treatment / vaccine for tackling the coronavirus would have positive effects on the world economy. moreover, the adoption of the european commission ’ s proposal on the “ next generation eu ” instrument will accelerate the recovery of the european economy. 2. policy action in the euro area european and national policymakers have acted quickly and decisively with an initial round of 1 / 6 bis central bankers'speeches measures that are sharply reducing the effects of the pandemic shock. the governing council of the european central bank ( ecb ) adopted in march, april and june 2020 an even more accommodative monetary policy stance. this aims primarily at preventing the disruption of the medium - term path to price stability, averting fragmentation and ensuring a smooth transmission of monetary policy in the euro area, while at the same time supporting households, businesses and banks to absorb the shocks caused by the pandemic. in particular, the interventions aimed at ( a ) ensuring favourable liquidity conditions for the banking system, ( b ) ensuring the smooth flow of financing to the real economy and ( c ) preventing a pro - cyclical tightening of financial conditions for all sectors of the euro area economy. moreover, the supervisory board provided banks with the necessary temporary flexibility regarding capital adequacy and liquidity. the governing council of the ecb has announced that it will continue to monitor and analyse the effects of the pandemic on economic developments, the medium - term outlook for inflation and monetary policy transmission. it finally stated that it stands ready to adjust its instruments as appropriate. in addition to monetary policy interventions, there have been immediate and far - reaching initiatives and measures by national governments and european institutions, both to tackle the pandemic and to protect the economic and social fabric, as well as to

of rmb business to cater to the needs of the market. besides, the real time gross settlement system of macao has interface capabilities with the mainland and will surely facilitate cross border clearing for the rmb. the role of macao as a trade platform between the mainland and portuguese speaking countries 8 ) on a more international perspective, macao has been exploiting its special geographical and historical conditions in performing its liaison platform function for economic cooperation between china and portuguese speaking countries, namely angola, brazil, cape verde, east timor, guinea - bissau, mozambique, portugal and sao tome e principe. they have a total population of more than 200 million and endowed with abundant natural resources and energy potentials. in the 12th five - year - plan, it is stipulated that macao will have strong support in the development of a service platform for the economic cooperation between china and portuguese speaking countries, whereby appropriate economic diversification of macao can be promoted. recently, there is an increasing rise in economic activities between china and lusophone countries. trade volume with the 8 lusophone countries amounted to usd128. 8 billion in 2012, which was a 10. 1 % increase year - on - year. there is a great demand in the market for related financial services. macao can fully embody its platform function by providing solid financial support services for trade. 5 9 ) some portuguese speaking countries would like to share macao ’ s experience in managing rmb business as well as the experience in dealing with investment in the currency. to this end, recently, the central bank of mozambique, under the terms of the “ memorandum of understanding ” with the monetary authority of macao, arranged to send officers to macao in mid - april with a view to making preparation for future development. 10 ) on the other hand, banks with capital from china and portugal account for the lion ’ s share in macao ’ s banking industry. some banks of chinese capital have executed business cooperation agreements with financial institutions of some portuguese speaking countries. under such indigenous competitiveness, the msar government is leading local financial institutions to make full use of the development opportunity offered by portuguese speaking countries to further expand their business. as such, we can grasp the chance and direct suitable financial institutions and enterprises to invest in those countries through macao as the platform. we follow the strategic direction of “ internationalization ” as postulated by our country. such a move will have spill - over effect on other economic / trade activities