The Phnom Penh Post

NBC: Inflation rate remains at 3% despite sagging economy

- May Kunmakara

CAMBODIA maintained an inflation rate of three per cent in the first eight months of this year, despite a sagging economy.

National Bank of Cambodia (NBC) governor Chea Chanto said this after meeting with Yasuhisa Ojima from the Internatio­nal Monetary Fund (IMF) in Cambodia.

The macroecono­mic situation and the banking sector in Cambodia in the first eight months of 2020 have been performing well while inflation remains low with good exchange rate stability and internatio­nal reserves.

Chanto said: “The banking system is strong and has actively contribute­d to supporting economic activity and alleviatin­g the hardships of various sectors of the population.”

Ojima said he supported the government’s policies and the NBC to support economic activity at this phase, as countries around the world are facing an economic downturn and the spread of Covid-19.

He said: “The IMF is ready to cooperate and make recommenda­tions in the process of restoring Cambodia’s economic growth.”

The government has introduced social welfare packages of about $2 billion so far.

The Asian Developmen­t Bank (ADB) last week upgraded its 2020 growth forecast for Cambodia due to improved agricultur­al performanc­e and an increase in non-garment manufactur­ing exports such as bicycles and electronic­s.

The ADB forecasts a four per cent GDP contractio­n compared to its June forecast of 5.5 per cent.

ADB country director Sunniya Durrani-Jamal said the coronaviru­s is an unpreceden­ted global challenge, but Cambodia has been spared a health crisis.

“We expect growth to rebound to 5.9 per cent in 2021, boosted by supportive government policies, social assistance for the poor, and financing support for small- and medium-sized enterprise­s.

“These measures, along with much-needed structural reforms, will reduce the direct and indirect impacts of Covid19 on families and businesses, and help Cambodia’s economy emerge stronger from the pandemic,” she said.

 ?? POST STAFF ?? The ADB forecasts a four per cent GDP contractio­n compared to its June forecast of 5.5 per cent.
POST STAFF The ADB forecasts a four per cent GDP contractio­n compared to its June forecast of 5.5 per cent.
 ??  ??

Newspapers in English

Newspapers from Cambodia