Hanoi: Cambodia is among a select group of ASEAN's emerging markets and developing economies anticipated to achieve a current account surplus this year, as reported by the International Monetary Fund (IMF).
According to Agence Kampuchea Presse, in its World Economic Outlook released last week, the IMF forecasted a current account surplus of 2.3 percent of GDP for Cambodia this year, marking a shift from a deficit of 1.7 percent recorded last year. However, the surplus is expected to decrease to 1.1 percent of GDP next year. Since 2017, Cambodia has experienced deficits ranging from 2.5 to nearly 30 percent.
The current account balance considers trade in goods and services along with financial transfers such as worker remittances and foreign aid. A surplus in this account can indicate a high rate of national savings compared to investment.
In the IMF's data from last week, Singapore, categorized as an advanced economy, is projected to have the largest surplus at 17.2 percent of GDP. Among other ASEAN economies, Brunei follows with 15.4 percent, then Vietnam with 3.2 percent, Cambodia with 2.3 percent, Malaysia with 1.6 percent, and Thailand with 1.2 percent.
The Philippines is expected to face the largest deficit among ASEAN economies at 3.4 percent, followed by Myanmar at 2.4 percent, Indonesia at 1.5 percent, and Laos at 0.1 percent.
Among the other members of the Regional Comprehensive Economic Partnership, South Korea is predicted to have the largest current account surplus at 3.5 percent of GDP, followed closely by Japan at 3.4 percent and China at 1.9 percent. New Zealand is expected to experience the largest deficit at 4.9 percent, followed by Australia at 3.1 percent.
Globally, the IMF's outlook indicated that current account balances, the sums of absolute surpluses and deficits, are projected to decrease over the next five years. The report highlighted that "the widening of current account balances in 2024 reflected widening domestic imbalances and a pickup in global goods trade." It further noted that "over the medium term, global balances are expected to narrow gradually as the effects of these factors wane."