Cambodia: 2015 Article IV Consultation — Press Release; Staff Report; and Statement by the Executive Director for Cambodia
IMF Staff Country Reports, November 16, 2015
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- Cambodia: 2015 Article IV Consultation — Press Release; Staff Report; and Statement by the Executive Director for Cambodia
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Bibliographic details
- Published: November 16, 2015
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513520254.002
Overview
- Economic activity in Cambodia remained strong with a growth rate at 7 percent in 2014.
- The short-term outlook was assessed as broadly favorable in the 2015 Article IV Consultation.
Growth and inflation
- Growth in 2014: 7 percent.
- Growth projected for 2015: 7 percent.
- Inflation fell in 2014 and through 2015, driven by strong external disinflationary pressures from lower food and oil prices.
- Inflation projected to rise gradually to about 2 percent by end-2015.
External sector and exchange rate dynamics
- The real effective exchange rate appreciated following U.S. dollar strengthening.
- Cambodia faced growing competition from other low-cost garment producers.
- External disinflationary pressures (lower food and oil prices) contributed to lower inflation in 2014 and through 2015.
Fiscal policy and public finances
- The fiscal deficit is projected to rise modestly to 2 percent in 2015.
- The projected fiscal outcome reflects strong measures to improve revenue administration.
Short-term outlook and risks
- Short-term outlook: broadly favorable, with robust growth and contained inflationary pressures as described above.
- Key upside/downside factors implied by the assessment include exchange rate movements (U.S. dollar strength) and regional competition in garments.
Key statistics (as reported)
- Growth rate in 2014: 7 percent
- Projected growth in 2015: 7 percent
- Inflation projected by end-2015: about 2 percent
- Projected fiscal deficit in 2015: 2 percent
International Monetary Fund. Cambodia: 2015 Article IV Consultation — Press Release; Staff Report; and Statement by the Executive Director for Cambodia (IMF Staff Country Reports 2015, Issue 307).