Thursday, April 05, 2007

WB forecasts favorable economic prospect to continue for Cambodia in 2007

April 05, 2007

International and domestic conditions bode well for continued favorable economic prospects for Cambodia in 2007, said a report issued by the World Bank's (WB) Cambodia Office in Phnom Penh on Thursday.

"The four growth pillars, namely garments, tourism, construction and agriculture, are expected to continue to thrive in 2007 with real Gross Domestic Products (GDP) growth estimated at about 9 percent," it said.

Overall growth is also expected to remain strong in the medium terms, it said, adding that increasing Foreign Direct Investment ( FDI) will be sustained and the discovery of offshore oil and gas reserves will likely bring about even higher growth.

However, it continued, "the garments sector is now facing stiffer competition from Vietnam's accession to the World Trade Organization (WTO) and possibility of greater competition from China in 2008."

At the same time, it said, agricultural growth in Cambodia has been particularly volatile over the past several years and therefore is somewhat unpredictable.

"The new oil sector will also pose additional challenges to macro-economic and fiscal management," it said.

"Strong macro-economic performance, underpinned by prudent fiscal and monetary policies, is thus expected to persist, though these new opportunities and risks will also shape medium term prospects," it concluded.

According to WB, Cambodia's real GDP grew at about 10.5 percent in 2006 over 2005, marking a third consecutive year of double- digit rate.

Source: Xinhua

1 comment:

Anonymous said...

Where is the surprise? We all know
with Somdach Hun Sen leadership,
every year will always be better
than the previous year.

And on behalf of all Khmer People,
I like to thank all members of
the administration for their
sustained hard works over the
years. To me, this is a miracle.
I don't know where they got the
energy from, especially with so
many evil oppositions who
constantly opposing their efforts.

God blesses all.