PHNOM PENH, Oct 12 (NNN-AKP) – Cambodia’s economic activity has been strong, and growth is expected to remain around seven percent in 2019, the International Monetary Fund (IMF) said.
The statement was released after an IMF team, led by Jarkko Turunen, visited Phnom Penh from Sept 30 to Oct 11.
Deterioration of external conditions is expected to lead to a slowdown in growth to below seven percent in 2020, said Turunen, who led the IMF team to visit Cambodia, adding that, in the medium term, growth is expected to moderate further, as the real-estate and credit cycles mature.
“Cambodia’s economic outlook is positive, although there are significant downside risks,” he said.
“The on-going Everything but Arms (EBA) review by the European Union — Cambodia’s primary export partner — could lead to a suspension of preferential trade access later next year, which could have a large negative impact on near-term economic activity.”
Other downside risks include spillovers from rise in global trade protectionism, which could hamper exports and dent investor’s confidence, and weaker than expected global growth, Turunen said.
“Public debt remains low at 28.6 percent of GDP in 2018, and Cambodia is expected to remain at low risk of debt stress, despite an increase in both debt disbursements and Public-Private Partnerships, to finance needed infrastructure investment,” he added.– NNN-AKP