|
PHNOM PENH, July 18 (Xinhua) -- Cambodia's economic growth was projected at 7 percent this year with strong support from exports of garments, real estate and the drop of oil prices, the International Monetary Fund (IMF) said on Monday.
Markus Rodlauer, deputy director of IMF's Asia Pacific Department, told a press conference that Cambodia is a fast-growing, highly open economy, and just attained lower-middle-income status. In 2015, economic activity remained strong, while inflation rose moderately.
He said over the medium term, growth is projected to slow to around 6.25 percent due to a gradual reduction in foreign direct investment (FDI), challenges in export diversification, and a moderation in the credit cycle.
The IMF projected that the inflation is to rise to 3.2 percent by end-2016 due to a pickup in food prices.
The IMF also noted that some main downside risks to the outlook arise from rapid credit growth and increasingly concentrated real estate, which threaten to undermine economic and financial stability.
"External risks include a slowdown in China, an appreciating U.S. dollars, weaker growth in Europe and increased uncertainty from the Brexit referendum result, and a sharper-than-anticipated tighthening in global financial conditions," Markus added.
The IMF said that over the last two decades, Cambodia grew rapidly, its integration with the global economy increased sharply and poverty has fallen significantly.
"Important steps have been taken by the government that will help Cambodia capitalize on these opportunities. Nonetheless, further measures are needed to boost productivity, increase competitiveness, and ensure that the benefits of growth are widely share," he said. Enditem
