Wednesday, January 09, 2013

Cambodia risks overheating as credit booms: IMF

Wednesday, Jan 09, 2013
Reuters

WASHINGTON - Cambodia's financial system could be overheating, posing a risk to the country's strong economic growth, International Monetary Fund (IMF) staff reported after their annual health check on the economy.

In the past year, private credit expanded by nearly a third in Cambodia and reached 37 per cent of national income, zooming above levels seen in similar low-income countries in South-east Asia, IMF staff said in documents released on Tuesday.

The ratio between credit and national income is now much higher than the long-term trend, which puts the economy at risk.

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