IMF Predicts Country’s Economy to Grow 7%
By | November 16, 2013

The International Monetary Fund (IMF) on Friday said it expects Cambodia’s economy to grow by 7 percent this year, fueled mostly by the garment, tourism and construction sectors, though risks such as extreme weather and labor market instabilities could cause growth to fluctuate.

The IMF also predicted that in 2014, gross domestic product would increase to 7.25 percent.

“Economic activity remains strong, driven by robust garment exports, tourism and construction, despite a tepid global recovery. GDP growth is projected at 7 percent in 2013 due to recent floods and a temporary slowdown during the election period,” Meral Karasulu, Asia and Pacific deputy division chief at the IMF, said at a news conference.

“As global recovery continues, growth is projected to pick up 7.25 percent next year.”

Ms. Karasulu made her remarks following a 10-day visit to the country to assess Cambodia’s macroeconomic developments.

Economic growth is still subject to risks, she said.

“Extreme weather conditions, labor market instabilities, and rapid credit growth, particularly in the real estate and construction sector, pose potential risks,” Ms. Karasulu said, adding that labor market instabilities did not refer to any particular event, such as Tuesday’s fatal clashes between police and garment workers in Phnom Penh.

“We’re not referencing Tuesday’s events or any other event,” she said. “It is a stable labor market at this time.”

The IMF’s GDP prediction follows reports by the World Bank and the Asian Development Bank (ADB), which made similar growth forecasts.

The World Bank said Cambodia’s economy would grow 7 percent this year and next year, while the ADB predicted 7.2 percent for 2013 and 7.5 percent for 2014.

© 2013, The Cambodia Daily. All rights reserved. No part of this article may be reproduced in print, electronically, broadcast, rewritten or redistributed without written permission.

LATEST

The year is 1945 and Cambodian men are packed into traditional longboats, ready to race each other in an event that “has been going on for more than 1,000 years” at the annual Water Festival in Phnom Penh.

CNRP Vice President Kem Sokha said during a radio interview this week that he will meet with senior officials in the U.S. Department of Defense during his 20-day visit to the U.S., seeking their support for an eventual CNRP-led government.

The National Election Committee on Friday said that political parties would be banned from setting up permanent campaign bases in the city during next month’s council elections.

Sao Sothy’s home is small and the furniture is sparse. There are no tables or chairs. In one room, there is a small bed, but her family of four sleeps on mats in the living room. Hanging on the otherwise bare walls is Ms. Sothy’s teacher’s certificate.

The Council of Ministers on Friday passed three long-awaited laws on the reform of the judiciary and will send them to the National Assembly early next week.

The Cambodia Daily | All the News Without Fear or Favor | The Daily Newspaper of Record Since 1993