DPA
Phnom Penh - The International Monetary Fund Wednesday supported Cambodian government optimism for ongoing economic growth although it cautioned that reforms were still necessary to maximize the nation's economic boom.
IMF managing director Rodrigo de Rato told a press conference in the capital Wednesday that despite work remaining to be done in areas including good governance and budgetary efficiency and revenue flow, Cambodia's progress was impressive and should continue.
"Cambodia is heading in the right direction for strengthening its integration with the global economy. We see Cambodia will benefit tremendously from becoming a more active member of the global economy both in terms of trade and finances," he said.
"We already see some interest in foreign investment in Cambodia in the areas like garments and tourism but recently also in other important sectors like water, oil, and those are all to the benefit of the country."
However a number of areas still needed work, he cautioned, specifically strengthening the efficiency of the budget and revenue flows, as well as social reforms in both the governance and banking sectors.
"Independent bodies to fight corruption are essential," he added, noting that an anti-corruption law was still to be passed despite an anti-corruption unit being set up under the government's Council of Ministers in the interim.
But continued strong micro-economic framework policies and the increased credibility of the country should ensure Cambodia continues to benefit from sustained high economic growth, he added.
The IMF has worked particularly closely with the government on banking and financial sector reforms as that area of the economy continues to experience unprecedented growth, and de Rato said he paid particular attention to this area during his visit.
"The banking sector is expanding rapidly. Financial sector growth is critical for Cambodia's economic development, and my discussions with Governor Chea Chantho naturally focused on the banking system," he said.
"We fully shared the view that strong supervision is essential for safeguarding the health of the banking system, and I was pleased to learn that efforts enforcing the regulatory environment would be enhanced."
Overall, he said the IMF expected the economy to grow at around nine per cent this year, with inflation expected to remain relatively low.
Although he said the discovery of potentially rich offshore oil reserves was undoubtedly to be seen as a positive for Cambodia, it was merely a promise at this stage with drilling yet to commence.
However, he said he was encouraged by government efforts to establish an appropriate fiscal regime before that promise was realised.
"Sound fiscal and monetary policies have helped boost confidence and increase private sector activity, and these trends should continue in 2007," de Rato said.
The first IMF managing director to visit since 1993, de Rato said he and his delegation met with a range of high-level government ministers and officials during their visit, including Prime Minister Hun Sen and Economy, Finance minister Keat Chhon.
IMF managing director Rodrigo de Rato told a press conference in the capital Wednesday that despite work remaining to be done in areas including good governance and budgetary efficiency and revenue flow, Cambodia's progress was impressive and should continue.
"Cambodia is heading in the right direction for strengthening its integration with the global economy. We see Cambodia will benefit tremendously from becoming a more active member of the global economy both in terms of trade and finances," he said.
"We already see some interest in foreign investment in Cambodia in the areas like garments and tourism but recently also in other important sectors like water, oil, and those are all to the benefit of the country."
However a number of areas still needed work, he cautioned, specifically strengthening the efficiency of the budget and revenue flows, as well as social reforms in both the governance and banking sectors.
"Independent bodies to fight corruption are essential," he added, noting that an anti-corruption law was still to be passed despite an anti-corruption unit being set up under the government's Council of Ministers in the interim.
But continued strong micro-economic framework policies and the increased credibility of the country should ensure Cambodia continues to benefit from sustained high economic growth, he added.
The IMF has worked particularly closely with the government on banking and financial sector reforms as that area of the economy continues to experience unprecedented growth, and de Rato said he paid particular attention to this area during his visit.
"The banking sector is expanding rapidly. Financial sector growth is critical for Cambodia's economic development, and my discussions with Governor Chea Chantho naturally focused on the banking system," he said.
"We fully shared the view that strong supervision is essential for safeguarding the health of the banking system, and I was pleased to learn that efforts enforcing the regulatory environment would be enhanced."
Overall, he said the IMF expected the economy to grow at around nine per cent this year, with inflation expected to remain relatively low.
Although he said the discovery of potentially rich offshore oil reserves was undoubtedly to be seen as a positive for Cambodia, it was merely a promise at this stage with drilling yet to commence.
However, he said he was encouraged by government efforts to establish an appropriate fiscal regime before that promise was realised.
"Sound fiscal and monetary policies have helped boost confidence and increase private sector activity, and these trends should continue in 2007," de Rato said.
The first IMF managing director to visit since 1993, de Rato said he and his delegation met with a range of high-level government ministers and officials during their visit, including Prime Minister Hun Sen and Economy, Finance minister Keat Chhon.
2 comments:
IMF managing director Rodrigo de Rato is lying to himself and the world! The reality in Cambodia is painting a very different picture for Cambodia and Cambodian people unless he is blind because the evident are everywhere!
No country in South East Asia is more backward, more oppressed, and more dictatorship than Cambodia!
IMF is right, Cambodia now is attracting lot of foreign investers. therefore the export is exponentially high, plus TOURISM is accelerating. the real issue is how this economic improvement can most benefit to local people.
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