Transcribed
Cambodia - Selected economic indicators (%), Inflation
3.23.1 Selected economic indicators (%) 2013 2014 GDP growth 7.2 7.5 Inflation 3.0 3.5 Current account balance -11.1 -10.1 (share of GDP) Source: ADB estimates. 3.23.7 Inflation 5-year moving average 10 25.0 -5- 2008 2009 2010 2011 2012 2013 2014 Forecast Source: Asian Development Outlook database. 3.23.8 Current account balance % of GDP 0, -4_ -8- -12- 2008 2009 2010 2011 2012 2013 2014 Forecast Source: Asian Development Outlook database.
Cambodia - Selected economic indicators (%), Inflation
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In light of the rapid growth in credit and excess liquidity at some
banks, additional increases in bank reserve requirements may be required
to reduce risks to financial stability. In this regard, the...
authorities are
considering such macroprudential measures as imposing higher capital
requirements for banks, or tightening permitted ratios of loans to value
or loans to deposits. The central bank plans to develop the interbank
market by introducing negotiable certificates of deposit, moving toward
more market-based monetary policy operations. To reduce the heavy use
of the US dollar for local transactions, the government will continue to
encourage the use of the riel. Last year, the ratio of US dollar deposits to
total deposits was 95.7%, down only marginally from 97.0% in 2008.
Good domestic harvests and relatively stable global food prices
suggest that inflation this year will be on average similar to that in 2012
(Figure 3.23.7). Inflation is seen quickening in 2014 as continued robust
domestic demand likely encounters some supply constraints. These
inflation forecasts will be at risk if bad weather pushes up food prices.
Merchandise exports are projected to pick up during the forecast
period while growth in imports moderates after the completion of large
power projects. Receipts from tourism will keep the services account
in surplus. The current account deficit, excluding official transfers, is
projected to narrow (Figure 3.23.8). FDI and other capital flows are
expected to maintain international reserves at levels that cover more than
4 months of imports.
Developments that enhance the environment for the private sector
included the initial public offering of shares in the Phnom Penh Water
Supply Authority, the first listing on the Cambodia Securities Exchange.
An arbitration center was launched to provide businesses with a faster
and less expensive way to resolve commercial disputes, and a credit
bureau started to provide banks with better information on potential
borrowers. To tackle corruption the government issued lists in January
2013 showing the official fees for public services including customs,
taxation, business and trading procedures, and other activities related to
investment. Finally, the authorities are strengthening the environment for
public–private partnerships (Box 3.23.1).
Sources: Asian Development Outlook Database - http://www.adb.org/countries/cambodia/main
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