Cambodia: Staff Report for the 2011 Article IV Consultation

IMF Staff Country Reports, February 27, 2012

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Cambodia’s high degree of dollarization and largely reduced fiscal space constrain the authorities’ ability to cushion shocks.
Macroeconomic stability hinges on prudent fiscal policies.
The mission cautioned that fiscal space is limited and that greater consolidation efforts are needed to strengthen revenue administration and prioritize spending.
The outlook for external debt sustainability has improved on Cambodia’s prudent track record.
Potentially large contingent liabilities from public–private power sector projects need to be carefully managed.

Strengthen revenue administration to expand limited fiscal space.
Prioritize public spending to support macroeconomic stability given constrained fiscal room.
Manage contingent liabilities associated with public–private power sector projects to protect external debt sustainability.

High degree of dollarization increases vulnerability to external and exchange-rate shocks.
Reduced fiscal space limits fiscal policy responses to adverse shocks.
Contingent liabilities from power sector projects pose a material risk to external debt sustainability if not carefully managed.

Subjects: Bank deposits, Banking, External debt, Fiscal policy, Fiscal space, National accounts, Public debt, Public financial management (PFM)
Keywords: CR, Fiscal space, GDP, GDP deflator, Global, headline inflation, IMF TA, ISCR, Mekong, nonagricultural GDP growth, real GDP, Real GDP growth, U.S. dollar

International Monetary Fund. Cambodia: Staff Report for the 2011 Article IV Consultation (Country Report No. 2012/046).

Cambodia: 2011 Article IV Consultation; IMF Country Report 12/46; January 18, 2012
- Cambodia: 2011 Article IV Consultation; IMF Country Report 12/46; January 18, 2012 (Markdown version)
- Cambodia: 2011 Article IV Consultation; IMF Country Report 12/46; January 18, 2012 (PDF)