Logo of Phnom Penh Post newspaper Phnom Penh Post - Competitiveness, diversification plan underway, says IMF

Competitiveness, diversification plan underway, says IMF

Content image - Phnom Penh Post
Workers work at a garment factory in Phnom Penh. Post Pix

Competitiveness, diversification plan underway, says IMF

The government is proactively addressing economic risks and uncertainties through a structural reform plan aimed at improving competitiveness and diversification, International Monetary Fund (IMF) senior economist Jarkko Turunen said on Friday.

He was speaking at a press conference marking the conclusion of an IMF team’s 12-day visit to Cambodia for discussions on the 2019 Article IV consultation, which analyses the economic developments and policies of member countries.

The ongoing ‘Everything but Arms’ (EBA) review by the EU – Cambodia’s primary export partner – could lead to a suspension of preferential trade access later next year.

This could have a large negative impact on near-term economic activity, said an IMF press release on Friday.

Turunen, who led the IMF team, said a government project is currently in the works to address spending on job creation, human capital development and infrastructure spending.

The authorities continue to implement macro-prudential measures and are taking welcome steps to promote the effectiveness and transparency of those policy decisions, the IMF said.

At the same time, private sector credit, which is increasingly concentrated on the real estate and construction sectors, has accelerated and is expected to grow around 28 per cent this year, it said.

The World Bank’s East Asia and Pacific Economic Update report released last week said Cambodia’s economic outlook is facing several challenges – including the increase of credit provided to the construction and real estate sectors alongside rising indebtedness.

The report said the Kingdom must improve its external competitiveness to maintain moderate growth.

“It is an imperative to improve the country’s external competitiveness through increased productivity in the presence of rising minimum wages.”

Cambodia’s economic activity will remain strong with real gross domestic product growth expected at around seven per cent this year, owing to continued export growth and strong construction activity, while inflation is expected to remain stable at around 2.5 per cent, the IMF said.

The IMF stands ready to support the authorities’ reform efforts through policy advice and capacity development activities, it said.


  • Wing Bank opens new branch in front of Orkide The Royal along Street 2004

    Wing Bank celebrates first anniversary as commercial bank with launch of brand-new branch. One year since officially launching with a commercial banking licence, Wing Bank on March 14 launched a new branch in front of Orkide The Royal along Street 2004. The launch was presided over by

  • Girl from Stung Meanchey dump now college grad living in Australia

    After finishing her foundational studies at Trinity College and earning a Bachelor’s degree from the University of Melbourne in 2022, Ron Sophy, a girl who once lived at the Stung Meanchey garbage dump and scavenged for things to sell, is now working at a private

  • Ministry using ChatGPT AI to ‘ease workload’; Khmer version planned

    The Digital Government Committee is planning to make a Khmer language version of popular artificial intelligence (AI) technology ChatGPT available to the public in the near future, following extensive testing. On March 9, the Ministry of Post and Telecommunications revealed that it has been using the

  • Wat Phnom hornbills attract tourists, locals

    Thanks to the arrival of a friendly flock of great hornbills, Hour Rithy, a former aviculturist – or raiser of birds – in Kratie province turned Phnom Penh tuk tuk driver, has seen a partial return to his former profession. He has become something of a guide

  • Ministry orders all schools, public and private, to close for SEA Games

    From April 20 to May 18, all public and private educational institutions will be closed to maintain order and support Cambodia's hosting of the 32nd SEA Games and 12th ASEAN Para Games, said a directive from the Ministry of Education, Youth and Sport. Cambodia will host the

  • Almost 9K tourists see equinox sunrise at Angkor Wat

    Nearly 9,000 visitors – including 2,226 international tourists – gathered at Angkor Wat on March 21 to view the spring equinox sunrise, according to a senior official of the Siem Reap provinical tourism department. Ngov Seng Kak, director of the department, said a total of 8,726 people visited Angkor Wat to