Search form

Login - Register | FOLLOW US ON

Logo of Phnom Penh Post newspaper Phnom Penh Post - Growth but not without risks: IMF

Growth but not without risks: IMF

Despite forecasting strong growth for Cambodia this year, the International Monetary Fund warned of risks posed to the country’s economy by the anticipated winding down of the US Federal Reserve's quantitative easing.

Speaking at a conference in Phnom Penh on Friday, Meral Karasulu, deputy division chief at the Asia and Pacific Department of the IMF, said the potential slowdown of “unconventional monetary policy” in the US – effectively injecting money in to the world economy – could have “significant spillovers” across the region.

“Not withstanding robust growth, the economic outlook is subject to downside risks,” said Karasulu, adding that tightening global liquidity could impact foreign investment, tourism and international banking flows.

Nevertheless, the IMF expects Cambodia’s economy to grow by 7 per cent this year, upgraded from the 6.7 per cent it projected in April this year.

The Federal Reserve hinted in June that it would look to taper its policy of cash fuelling this year. And though it is yet to occur, speculation alone has sent ripples throughout the world economy as economists and markets anticipate a decline.

“I think it will somehow impact [Cambodia], but it is very small,” said Mey Kalyan, an adviser to the Supreme National Economic Council.

Kalyan said most of the impacts would be felt in countries with greater short-term investment options.

Given Cambodia’s nascent securities market, most investments are long-term, and therefore the economy was less vulnerable he said.

0

Comments

Please, login or register to post a comment

Latest Video

Bodies of Cambodian peacekeepers returned to Kingdom

The bodies of four Cambodian peacekeepers killed by a Christian militia in Central African Republic were repatriated to the Kingdom and honoured in an airport ceremony on May 21.

Phnom Penh eats: Ptas Nak Battambang

As the name suggests, Ptsa Nak Battambang – which in English means Battambang's house – is the right place for those who want to try some of the province's typical dishes in Phnom Penh.

Defence Minister Tea Banh yesterday said the popular appeal of the Cambodia National Rescue Party’s pledge to substantially boost commune budgets p

Opposition surrogate Kong Korm speaks to supporters at a campaign event on Monday in Prey Veng province in front a CNRP banner bearing the face of ex-party leader Sam Rainsy. Facebook

The National Election Committee has rejected an opposition campaign advertisement from airing on a state-owned television station because it featur