🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

IMF revises Cambodia's growth forecast, projects rise in Malaysia's GDP

EditorRachael Rajan
Published 18-10-2023, 10:04 pm
© Reuters.
USD/TRY
-
USD/MXN
-
USD/SEK
-
USD/THB
-
USD/HKD
-
EUR/BYN
-
EUR/KZT
-
USD/KZT
-
USD/MYR
-
USD/BYN
-

The International Monetary Fund (IMF) on Wednesday revised Cambodia's 2023 economic growth forecast downward from 5.8% to 5.6%. This was announced during an online press conference on the Regional Economic Outlook for Asia and Pacific. The revision is due to decreased demand from U.S. and European markets, as confirmed by the Ministry of Commerce's report showing a 17.8% year-on-year decrease in exports of garments, footwear, and travel goods. These exports amounted to $8.14 billion in the first three quarters of 2023.

Shanaka Peiris, an official from the IMF, highlighted the Regional Comprehensive Economic Partnership (RCEP), a trade pact involving 15 Asia-Pacific nations including ten ASEAN members and five trading partners, as a factor that could diversify and offer long-term benefits to Cambodia's economy. The nation's economy also relies heavily on sectors such as tourism, agriculture, real estate, and construction. The IMF predicts a growth rate of 6.1% for Cambodia in 2024.

The IMF also projected a 4.3% rise in Malaysia's Gross Domestic Product (GDP) for 2024, up from the projected 4% in 2023. This increase is driven by a surge in global export demand, particularly from the growing tech sector. Peiris underscored Malaysia's open economy and its significant role in Electrical and Electronics (E&E) exports. He anticipates a gradual global economic recovery and an increase in tech export demand.

While acknowledging slowing inflation in Malaysia, Peiris cautioned about potential risks from subsidy reforms in Budget 2024, labeling it as a one-off event and deeming additional measures from Bank Negara Malaysia (BNM) unnecessary. The IMF recommends a restrictive monetary policy stance to bring inflation down to the targeted 2-3% range, with the current hike in interest rates contributing towards this aim.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.