Cambodian Prime Minister Appreciates ADB’s New Forecast

AKP, September 27, 2017 –Samdech Akka Moha Sena Padei Techo Hun Sen, Prime Minister of the Kingdom of Cambodia, expressed his appreciation for the new forecast of Asian Development Bank over Cambodia’s economic growth for this year and next year.

“ADB forecasted that Cambodia would achieve an economic growth of 7.1 percent, it therefore means that Cambodia’s economic growth will continue to increase,” underlined the premier at a get-together with more than 10,000 garment and textile workers at Chak Angre Leu, Phnom Penh this morning.

At the same time, Samdech Techo Hun Sen reaffirmed the stability of Riel, the Cambodian national currency.

In an update of its annual publication Asian Development Outlook (ADO) 2017, ADB retained its forecast of Cambodia’s slightly higher economic growth of 7.1 percent for 2017 and 2018, in line with strong performance across developing Asia and a recovery in the major industrial economies.

According to an ADB’s news release, merchandise exports as indicated by customs data rose by 7.7 percent and imports by 8.1 percent in the first half of 2017, while balance of payments data show merchandise exports increased by 20.7 percent and imports up by 11.1 percent. The current account deficit for this year and the next excluding official transfers is seen narrowing from the 10.8 percent of gross domestic product (GDP) recorded in 2016, but slightly exceeding the ADO 2017 forecast. Inflation averaged 3.3 percent in the first seven months of 2017. Per month, inflation was highest at 4.2 percent in March and lowest at 2.3 percent by July due to softer fuel and food prices. The average inflation is forecast to come in at 3.0 percent this year, and edge up marginally to 3.2 percent next year.

Fiscal trends in the first six months of 2017 remained prudent and broadly supportive of growth, as envisaged in the 2017 budget, and the fiscal deficit for 2017 is expected to be close to the budget target, the equivalent of 4.3 percent of GDP. Following the implementation of macroprudential measures by the National Bank of Cambodia, growth of bank credit to the private sector continued to moderate to 16.5 percent in June 2017 compared to 28.1 percent in June 2016.

By Khan Sophirom