IMF chief lauds economic progress in Cambodia

International Monetary Fund (IMF) President Rodrigo de Rato has lauded the stellar growth of Cambodia's economy and its effective implementation of macroeconomic strategies, but hinted that more work is needed in poverty reduction, local press reported Thursday.

Rato arrived in Cambodia on Wednesday afternoon for a two-day official visit, during which he met with Prime Minister Hun Sen, National Assembly President Heng Samrin, Economy and Finance Minister Keat Chhon, National Bank of Cambodia Governor Chea Chanto and Commerce Minister Cham Prasidh, the Koh Santepheap newspaper reported.

"I have been impressed by the rapid growth of Cambodia's economy, and by the overall prudent approach to implementing macroeconomic policies. Sound fiscal and monetary policies have helped boost confidence and increase private sector activity, and these trends should continue in 2007," said Rato at a press conference in Phnom Penh, according to an IMF statement.

He added that the IMF expects the nation's economy to grow by 9 percent this year and inflation to remain low.

During a meeting with Hun Sen in Kandal province's Ta Khmao district, the IMF president expressed approval of the government's recent passing of a comprehensive customs law and its improved tax collection measures. He assured the premier that the IMF will continue to offer Cambodia aid in the financial sector, said Eang Sophallet, advisor to the prime minister, the Kampuchea Thmey reported.

Rato told the government to broaden the tax base in the 2008 budget and to use the proceeds to increase spending on high- quality infrastructure projects, strategic civil service reform, and priority areas such as health and education, the Koh Santepheap newspaper reported.

He stressed that there needs to be some improvements in governance "not only for enhancing the investment environment in Cambodia but also for strengthening the linkages between growth and poverty reduction".

Source: Xinhua.