Economy to Grow 7.2% This Year, IMF Says

Cambodia’s economy is expected to grow by 7.2 percent this year, but a policy of debt and deficit reduction must remain a priority in order for the projection to be met, according to a report released Friday by the International Monetary Fund (IMF).

The IMF’s biannual Regional Economic Outlook also projects Cambodia’s gross domestic product to grow by 7.3 percent in 2015.

Last year, the economy grew by 7.4 percent. “Going forward, the traditional drivers of external and domestic demand—garments, tourism, construction and agriculture—are expected to support growth,” Faisal Ahmed, the IMF’s representative in Cambodia, said Monday.

Friday’s report recommends the government prioritize policy aimed at reducing government deficit and debt accumulation so the country will attract more investors. “Creating fiscal space would not only strengthen fiscal credibility, but would also allow for increased infrastructure investment, which would boost productive capacity,” it says.

The IMF report follows a similar report released on October 6 by the World Bank, which predicts growth of 7.2 percent in 2014 and 7.5 percent in 2015.

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