Thursday, December 11, 2008

World Bank issues grim 2009 forecast for Cambodian economy [... because of its reliance on South Korean tourism and US garment sales]

December 11, 2008
PNA/Xinhua

PHNOM PENH, Dec. 11 — The World Bank has issued a bleak assessment for the Cambodian economy, predicting only 4.9 percent growth in 2009, national media reported Thursday.

Cambodia's reliance on South Korean tourism and U.S. garment sales would expose the country to crisis-hit economies, Stephane Guimbert, the World Bank senior economist for East Asia and Pacific, was quoted by the Phnom Penh Post as saying.

"Compared to many other countries in the region, (Cambodia) is even more open to the external environment," she said.

Guimbert said that though the country has benefited from its open policies, the slow global economy will cut demand for Cambodian exports and reduce tourism arrivals and foreign investment.

Meanwhile, the World Bank put 2008 growth at 6.7 percent, adding that remittances, which made up four percent of national income last year, would also fall.

However, Ouk Rabun, secretary of state for the Finance Ministry, told the National Assembly Monday that 2009 growth would hit 6.5 percent and inflation would drop to 10 percent.

3 comments:

Anonymous said...

Socheata, there you go again. 4.9% is great compared to minus 1% in the U. S. - Try to get it right for once.

Anonymous said...

You will make 6.5% more in 2009 than last year but you will pay 10% more for goods and service. Does that make you better off?

Anonymous said...

You are confusing growth with inflation.