IMF forecasts continued economic growth in mid-term

The International Monetary Fund (IMF) yesterday said Cambodia’s gross domestic product (GDP) will hover around 7.25 percent in the near term due to strong economic activity and reforms implemented in the country.

An IMF team led by Jarkko Turunen, visited Phnom Penh from September 19 to October 2 to carry-out discussions on the 2018 Article IV consultations.

“Cambodia has made significant progress towards the Sustainable Development Goals due to the years of impressive economic growth and reforms implemented. Income growth has outpaced peers, poverty has declined, and the economy has begun to gradually diversify.

“Economic activity has been strong in 2018 and real GDP growth is projected to grow by 7.25 percent, owing to strong external demand and expansionary fiscal policies, while inflation remains low at around 2.5 percent,” said Mr Jarko during a press conference.

Growth is projected to remain robust in the near term (2 or 3 years) before moderating to its potential growth rate, estimated at around 6 percent, in the medium-term (5 or 6 years) due to subdued productivity growth, maturing credit and the real estate cycles.

Read more...