Logo of Phnom Penh Post newspaper Phnom Penh Post - Region told to keep stimulus

Region told to keep stimulus

Region told to keep stimulus

THE Economic Research Institute for ASEAN and East Asia (ERIA) recommended Wednesday that Cambodia, Myanmar, Laos and Vietnam maintain stimulus spending “until economic recovery is clearly under way”.

However, Ricardo Varsano, a senior economist at the International Monetary Fund’s Fiscal Affairs Department, told seminar attendees at Raffles Hotel Le Royal that in the medium term the region needs to ensure fiscal sustainability and develop budget-consolidation plans as the global downturn subsides.

“Expenditure measures may have advantages over tax cuts or increases in transfers,” he said, adding that existing programmes should not be cut for lack of resources.

The London-based Economist Intelligence Unit said in its November outlook for Cambodia that the government’s scope for additional fiscal stimulus “will be limited by the budget deficit”.

In the long term, Varsano recommended, the four ASEAN neighbours should accelerate structural reforms to raise competitiveness.


  • Government hits back at threats to pull EBA, suspend UN seat

    The spokesman for the ruling Cambodian People’s Party (CPP) has said the government is in no way concerned after the European Parliament gave it three months to reverse what it called the “systematic repression of the political opposition”. Ignoring the ultimatum could mean facing

  • Chinese influx pushing locals, Westerners out of Preah Sihanouk

    Some within the Kingdom’s tourism industry have speculated that the recent influx of Chinese visitors may hinder domestic tourism as the price of accommodations in the coastal city of Sihanoukville continues to rise. Preah Sihanouk province, which has become a hotbed for Chinese investment

  • Sar Kheng: Sokha requested security

    Interior Minister Sar Kheng on Sunday revealed the story behind the transfer of former opposition party leader Kem Sokha from Trapaing Phlong prison in Tbong Khmum province to his house in the capital. Speaking at the ruling Cambodian People’s Party (CPP) headquarters in Prey

  • ‘Dire consequences’ from sanctions, warns AmCham

    American businesspeople in Cambodia have warned that any sanction against the Kingdom would have “dire consequences” that could push Cambodia even further into the arms of China. In a letter to US senators and representatives dated Monday, the American Chamber of Commerce Cambodia (AmCham) said