Business RecorderPakistan
Monday, 12 September 2011
PHNOM PENH: Cambodia's economy can grow as much as 8.7 percent this year, its strongest in a decade, propelled by a resurgence in its garments and tourism industries, Cambodian Prime Minister Hun Sen said on Monday.
The Cambodia government's official estimate for economic growth in 2011 is 6 percent, but Hun Sen said that could be topped by a wide margin.
"There is a possibility of higher growth of 8.7 percent," Hun Sen told a graduation ceremony at a university in the capital Phnom Penh, agreeing with an estimate by a local think-tank, the Economic Institute of Cambodia (EIC).
Hun Sen, however, cautioned that "unclear economic situations in the US and Europe" will affect the country and that Cambodia should diversify its economy into other sectors such as agriculture and mining.
After decades of war and upheaval, including the Khmer Rouge "killing fields", Cambodia witnessed an unprecedented boom before the global financial crisis, its economy expanding at around 10 percent annually in the five years leading up to 2008.
EIC economist Neou Seyha said the garment sector generated the country's strongest source of growth and was projected to bring $3.5 billion in exports this year. That would compare with $2.9 billion last year according to the Commerce Ministry.
"The garment sector is the driver of the economy while other sectors are beginning to recover," he said.
Peter Brimble, the Asian Development Bank's senior country economist in Cambodia, said Hun Sen's 8.7 percent projection was "very different" to the ADB's forecast of 6.5 percent.
The Cambodia government's official estimate for economic growth in 2011 is 6 percent, but Hun Sen said that could be topped by a wide margin.
"There is a possibility of higher growth of 8.7 percent," Hun Sen told a graduation ceremony at a university in the capital Phnom Penh, agreeing with an estimate by a local think-tank, the Economic Institute of Cambodia (EIC).
Hun Sen, however, cautioned that "unclear economic situations in the US and Europe" will affect the country and that Cambodia should diversify its economy into other sectors such as agriculture and mining.
After decades of war and upheaval, including the Khmer Rouge "killing fields", Cambodia witnessed an unprecedented boom before the global financial crisis, its economy expanding at around 10 percent annually in the five years leading up to 2008.
EIC economist Neou Seyha said the garment sector generated the country's strongest source of growth and was projected to bring $3.5 billion in exports this year. That would compare with $2.9 billion last year according to the Commerce Ministry.
"The garment sector is the driver of the economy while other sectors are beginning to recover," he said.
Peter Brimble, the Asian Development Bank's senior country economist in Cambodia, said Hun Sen's 8.7 percent projection was "very different" to the ADB's forecast of 6.5 percent.
3 comments:
I wonder what the opposition got to say about this growth?
We don't look at what Hun Sen said, we look at the everyday reality? If the economic growth is so high how come an 18-month old is suckling from the cow, how come many people are crying everyday because of eviction, how come nearly a million Cambodians are working in Thailand, Malaysia and other countries in appalling conditions, some even killed by their employers. And many, many rural people are living below poverty line.
This growth is only measured by foreign investments which mainly go to the pockets of corrupt officials and people are getting poorer because their land were given in a concession to the foreign investors.
Percentage is an unknown quantity.It doesn't tell you all about the well being of the nation.I believe,the number of GDP grow this years is correct,but what about the grove of poverty? dept ?,Is it 300% this year,compare to last year?.
Most Cambodian still live under $2-$3 per day.Bamboo-trains are still running on the national railway lines.Most majour assets are in Hanoi's hands for 99 years.The future is bleak for Cambodian people.
True Khmer
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