Phnom Penh: The International Monetary Fund has reassessed Cambodia's economy for 2021, agreeing with the World Bank that the local economy will grow at the rate of 2.2% in 2021. It predicts that 2022 will see a growth rate of around 5%, slightly higher than the World Bank’s own forecast. This is according to an IMF statement on the results of its meeting with the Ministry of Economy and Finance on Wednesday.

The meeting was videotaped by Finance Minister, Aun Pornmoniroth, and was attended by Article IV Mission of the International Monetary Fund, led by Alasdair Scott and Yasuhisa Ojima, the IMF’s representative in Cambodia. Leaders of other relevant ministries and institutions were also in attendance.

The IMF says, as a result of the assessment of the economic and financial situation of Cambodia, it has reassessed the kingdom’s prospects, believing it will achieve a higher growth rate of 2.2% in 2021, supported by a more positive trend than had been expected. The manufacturing and agricultural sectors, driven by strong external demand, are performing well.

It says in 2022, the Cambodian economy is projected to grow at around 5% due to the expectation of continued recovery of global demand and continued growth potential of the garment and non-garment sectors. Other areas of the economy, particularly tourism and the service sectors are also expected to rebound next year, thanks to the effectiveness of the introduction of policy measures by the Royal Government, especially the "economic recovery plan after the Covid-19 crisis."

The IMF also commended the Royal Government for its “active efforts” in addressing social and economic challenges, actively preventing the spread of Covid-19, and the fruitful progress of Cambodia's vaccination campaign. In addition to identifying a number of risk factors, the Article IV Mission also noted a number of positive consequences, such as opportunities for Cambodia, such as digital growth and green infrastructure. At the same time, the working group also expressed its strong will to support Cambodia in hosting the upcoming ASEAN Summit 2022 and says it is ready to provide more support to the Royal Government.

The Minister praised the work of Article IV and noted the similarities in the assessment of the Cambodian macroeconomic situation by the IMF and the Ministry of Economy and Finance. He also thanked the IMF for its good recommendations, which are “important inputs to support better Cambodian macroeconomic and public financing policies, in addition to prudent thinking”.