Cambodia: 2019 Article IV Consultation; Press Release; Staff Report; and Statement by the Executive Director for Cambodia

IMF Staff Country Reports, December 23, 2019

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Canonical URL: Cambodia: 2019 Article IV Consultation; Press Release; Staff Report; and Statement by the Executive Director for Cambodia

Stable macroeconomic environment and strong growth have contributed to significant progress toward Sustainable Development Goals (SDGs).
Key uncertainties noted:
- slower global growth
- potential suspension of preferential market access under the Everything but Arms (EBA) scheme
Policy implication: maintain macroeconomic stability while meeting large development needs and accelerating structural reforms.

Continued strong revenue mobilization efforts and a prudent fiscal stance are recommended.
Restraining nondevelopment current spending to allow additional spending to address development needs.
Expenditures should be oriented toward supporting inclusive growth through:
- priority infrastructure investment
- health spending
- education spending
Policies should be geared toward addressing sizeable spending needs to reach SDG targets in health, education and infrastructure, with support from the private sector and international donors.

Elevated financial sector vulnerabilities need to be addressed.
Accelerated implementation of structural reforms is needed to:
- remove structural constraints to growth
- correct external imbalances
- address governance and corruption weaknesses
- promote sustainable and inclusive development

Priority actions: accelerate structural reforms to sustain growth and inclusion.
Reform goals include improving governance, reducing corruption, and creating conditions for private sector and donor support to meet SDG-related spending needs.