ZCZC
BCN-21
CAMBODIA-ECONOMY-GROWTH-IMF
Cambodia’s economy expected to grow higher this year: IMF
PHNOM PENH, Oct. 3, 2018 (BSS/Xinhua) – Cambodia’s economy is forecast to
grow by 7.25 percent in 2018, 0.35 percentage point higher than that of last
year, the International Monetary Fund (IMF) said in a statement on Tuesday.
The Southeast Asian nation’s economy is traditionally driven by garment
exports, tourism, real estate and construction, and agriculture.
“Economic activity has been strong in 2018 and real GDP (gross domestic
product) growth is projected to grow by 71/4 percent, owing to strong
external demand and expansionary fiscal policies, while inflation remains low
at around 21/2 percent,” Jarkko Turunen, deputy division chief of the IMF’s
Asia Pacific Department, said in the statement at the end of an IMF team
visit to the kingdom.
He said growth is projected to remain robust, around 7 percent, in the near
term before moderating to its potential growth rate, estimated at around 6
percent, in the medium-term due to subdued productivity growth and maturing
credit and real estate cycles.
The current account deficit is projected to widen to about 10 percent of
GDP in 2018, due to higher imports, including imports of construction
materials, Turunen said, adding that the foreign reserves are nevertheless
expected to continue to grow, reaching 9.6 billion U.S. dollars (around 5
months of prospective imports) at end-2018.
“Public debt is low at just over 30 percent of GDP and Cambodia is expected
to remain at low risk of debt stress,” he said.
The IMF’s growth rate forecast was higher than the Cambodian government’s
prediction. The government has projected that the country’s economy is to
grow by 6.9 percent in 2018, pushing up the nation’s GDP to about 24.5
billion U.S. dollars.
BSS/XINHUA/HR/1222