IMF: Cambodia to be fastest-growing economy in ASEAN by 2025

Illustrative image (Photo: VNA)

Phnom Penh (VNA) - The International Monetary Fund (IMF) has projected that Cambodia will be the third-fastest growing economy in ASEAN next year and fastest growing economy in the region by 2025.

In the IMF’s recently-released World Economic Outlook, Cambodia’s economy is forecast to shrink 2.8 percent this year, much higher than the 1.5 percent contraction forecast for Indonesia.

Amid the COVID-19 pandemic, deeper contractions of 8.3 percent are forecast for the Philippines, 7.1 percent for Thailand and 6.0 percent for both Malaysia and Singapore.

Meanwhile, Myanmar is forecast to be the fastest-growing ASEAN economy this year with GDP expanding by 2.0 percent, followed by Vietnam with growth of 1.6 percent.

The IMF’s mid-term projections for 2025 show Cambodia outpacing its peers with growth forecast at 6.9 percent, making the country the region’s fastest growing economy.

Slower growth is forecast for Vietnam (6.6 percent), Myanmar and the Philippines (6.5 percent), Laos (6.1 percent), Indonesia (5.1 percent), Malaysia, (5.0 percent), Thailand (3.7 percent), Singapore (2.5 percent) and Brunei (1.8 percent).

In her forward to the outlook, IMF Economic Counsellor and Director of Research Gita Gopinath said the latest forecasts for 2020 were “somewhat less severe though still deep” compared with IMF forecasts in June./.