The International Monetary Fund (IMF) is firmly committed to continuing to help revitalise Cambodia’s economy in its post-Covid-19 recovery and provide the much-needed impetus for growth and development.
During a meeting with Minister of Economy and Finance Aun Pornmoniroth on Monday, IMF resident representative for Cambodia Yasuhisa Ojima acknowledged the effectiveness of the Kingdom’s efforts in combating the spread of Covid-19, as reported by the ministry.
He highlighted the productiveness of the implementation of recent “sharp” measures outlined in the government’s strategic framework for post-Covid-19 economic development and its various social protection programmes.
“We support the government’s increased cautiousness in its continued supervision of macroeconomic trends and its ongoing cooperation with the National Bank of Cambodia to monitor shifts in the regional and global economic situation.
“The IMF will maintain its support for Cambodia through continued traditional cooperation, together with the [IMF’s] Rapid Financing Facility, which may be an additional option for Cambodia to fill a shortage of funding in its post-Covid-19 economic recovery plans,” Ojima said.
Pornmoniroth said the IMF has always lent a hand to the Kingdom, especially during Covid-19.
He underlined the IMF’s crucial role in monitoring and assessing the global and regional economic direction and providing the Kingdom with valuable input to prepare the measures needed to ensure macroeconomic and financial stability, and shore up economic growth.
“Though Cambodia is recognised as one of the countries that best responded to the Covid-19 situation, the government will vigilantly continue to monitor the development of the pandemic and be careful not to underestimate the situation.
“It will keep implementing the right health measures and the acute actions necessary to support economic stability and people’s livelihoods.
“On this basis, Cambodia’s economic activity can retain a semblance of business as usual, with a better-than-expected fiscal situation, above all, in terms of tax revenue.
“This’d be a godsend for the implementation of the 2021 budget, allowing for greater budget space and lower-than-expected use of government savings.
“Recently though, fallout from the floods have been putting strain on the state’s burden, notably in the rehabilitation of transport and irrigation infrastructure,” Pornmoniroth said.
According to him, the government is preparing a Post-Covid-19 Recovery Plan, which is a medium-term consideration that is designed to quickly return economic growth to pre-Covid-19 levels.
On October 13, the IMF projected a 2.8 per cent contraction in the Cambodian economy this year, and a sharp rebound next year to 6.8 per cent growth.
The government has launched six rounds of measures to stimulate economic growth as the Kingdom prepares for a post-Covid-19 world. The measures have aimed to ensure that poor and vulnerable families continue to receive assistance during this difficult time.