PHNOM PENH: Cambodia's economic growth should stay at 7.25% this year and 7% next year, the International Monetary Fund (IMF) said on Tuesday.
Bank credit, increasingly lent to the real estate sector, is expected to grow around 20% this year and along with credit quality and unregulated lending by real estate developers, continues to pose risks to financial and macroeconomic stability, Jarkko Turunen, who led the IMF team on a visit to Cambodia, told a news conference.
National Bank of Cambodia has taken several policy measures to ease the risks, including introducing capital conservation safeguard and liquidity management, Mr Turunen said.
The IMF urged the government to accelerate reforms in the health and education sectors to achieve the target growth rate of 7% over the medium term, and improve business climate by lowering energy costs, better human resources and infrastructure.