A visiting delegation from the International Monetary Fund (IMF) has praised on Cambodia's sound economic progress, predicting that the economy will grow by 7.75 percent next year on the back of continued expansion in its four pillar industries, local media said on Wednesday.
IMF announced that Cambodia has implemented macroeconomic strategies well and that GDP in 2007 will rise by 9.5 percent over 2006, based on solid growth in the agriculture, construction, tourism and garment sectors, reported Cambodian-language newspaper the Rasmei Kampuchea.
In 2008, the figure will drop to a respectable 7.75 percent, as although garment exports are expected to rise, the speed of growth will be reduced by regional competition and a decrease in demand and export targets, reported another Cambodian-language newspaper the Koh Santepheap.
"There is increased regional competition and some softening of demand in key export markets. These factors are likely to persist in 2008, but real GDP growth is projected to remain strong at 7.75 percent," said an IMF statement.
IMF praised Cambodia for its income gathering, concluding that extra capital will now be available to enable the government to bolster all sectors.
The delegation, led by Jeremy Carter, an IMF advisor for the Asia-Pacific region, also predicted that government revenues will continue to increase and recommended the government with improved tax collection strategies, said the Rasmei Kampuchea.
IMF will continue to help organize accounting of the national budget and cash management, but the government should increase caution to prevent monetary risks as Cambodia now has an increased cash flow, it added.
According to official figures, Cambodia, although one of the most impoverished countries in the region, has scored consistent economic growth in the past decade. The increase rates even reached two digits in the peak period.