Cambodia International Political Economy

The International Monetary Fund (IMF) warned that the Cambodian economy faces serious challenges in the wake of the global economic crises according to Reuters.

More specifically the IMF stated that the Cambodia economy would suffer a severe decline in capital inflows and economic activity along with a possible shock to the banking system.

IMF recommendations to the Cambodian government include continued spending on social and infrastructure projects as well as greater flexibility in its exchange rate policy.