The fund cites continued downturn in key garment sector and big drop in foreign direct investment for revision, despite expected agricultural growth
THE International Monetary Fund (IMF) has downgraded its forecast for economic growth this year and warned the Cambodian government that it needs to steer spending from civil service wage growth towards social and infrastructure spending.
The fund said it now expected the Cambodian economy to contract 2.75 percent this year, a much more pessimistic forecast than it made in March when it said the economy would contract just 0.5 percent.
In December last year, the body predicted a 4.75 percent expansion in the economy for 2009. “Several areas of the economy are not performing as well as we expected in March,” said David Cowen, the deputy division chief in the IMF’s Asia and Pacific Department. Click to read more...
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