Cambodian economy predicted to grow 6.7 percent in 2013: IMF

Cambodian economy predicted to grow 6.7 percent in 2013: IMF

Cambodia is expected to register an economic growth rate of more than 6.5 percent this year, the International Monetary Fund (IMF) said Tuesday.

Despite the global slowdown, Cambodia's economic performance has been holding up driven by resilient exports, robust tourism and construction, the Washington-based global lender said in its 2012 Article IV staff report on the Asian economy released Tuesday.

The country's gross domestic product (GDP) is forecast to expand around 6.7 percent in 2013, the IMF said.

"A fragile global economic outlook, rapid credit growth, and potentially extreme weather conditions continue to pose significant risks," the IMF cautioned in the annual checkup of Cambodia's economic and financial conditions.

"Given the robust economic expansion, the recent increase in the reserve requirement constitutes a critical step toward safeguarding financial stability, although further increases and additional measures may be needed to guard against excessive risk taking by banks," the report noted.

Improvements in macroeconomic management can enable a virtuous cycle of more self-sustaining and inclusive growth if they are supported by steadfast structural reforms to facilitate private sector-led economic diversification, improve public finance management, and ensure greater efficiency of public spending and budget transparency, suggested the IMF.

xinhua