PHNOM PENH (AFP)--Cambodia's economy will shrink by 0.5% this year, the International Monetary Fund said Friday, lowering its earlier prediction as the country is hit by the global financial crisis.
In a press statement the IMF said the poverty-stricken country wouldn't make the target set late last year of 4.8% growth in 2009.
"The global economic contraction and financial crisis are increasingly affecting Cambodia's economy," the statement said.
Cambodia has seen sharp declines in garment exports to the U.S. and Europe as well as fewer tourist visits, the financial institution said.
It added that there has been a rapid slowdown in construction and foreign investment as the country's economy is doused after enjoying several years of double-digit growth.
The statement recommended that the Cambodian government help stimulate growth by allowing its budget deficit to rise to around 4.75% of gross domestic product - a significant increase from its 2% deficit last year.
Despite recent growth, underemployment, where someone's work earns only a meager return, remains high in Cambodia, one of the world's poorest countries.
Some 35% of the country's 14 million people live on less than $0.50 a day.
In a press statement the IMF said the poverty-stricken country wouldn't make the target set late last year of 4.8% growth in 2009.
"The global economic contraction and financial crisis are increasingly affecting Cambodia's economy," the statement said.
Cambodia has seen sharp declines in garment exports to the U.S. and Europe as well as fewer tourist visits, the financial institution said.
It added that there has been a rapid slowdown in construction and foreign investment as the country's economy is doused after enjoying several years of double-digit growth.
The statement recommended that the Cambodian government help stimulate growth by allowing its budget deficit to rise to around 4.75% of gross domestic product - a significant increase from its 2% deficit last year.
Despite recent growth, underemployment, where someone's work earns only a meager return, remains high in Cambodia, one of the world's poorest countries.
Some 35% of the country's 14 million people live on less than $0.50 a day.
10 comments:
Dr. Hun likes to lie because he doesn't wants to lose face. DR. Hun doesn't care if the Khmer people are jobless.
Give me a break. .05? Go to some business school and learn a few things. That's almost like nothing. It's people like KI that makes a big fuzz about small things. What are you, a bunch of guys or gossiping housewives lol?
No one can predict the economic growth, even in the next second.
I can surely predict that Hun Sen will be shot in the next two weeks either with bullets or lightning.
Start your time, from March 07, 2009.
If this prediction turns out to be true, the G-man will be after me -- of course, if he gets hit with bullets, but I'm exempt from lighning.
4:41AM You may become a verry famous shoutsayer!
That's right, 11:48, Pouk Ah Scam Rainxy (KI) is a sore loser. All they do is trying to deceive Khmer with craps. However, they are only making a fool out of themselves.
4:21am if you predict like that i predict you gonna die soon,too.Puk ah chhkud eng follow only UNHCR. You don't know UNHCR killed lots of khmer people in 1979-1984 ,because they always told the countries a round the world don't supporting khmer on that time and let alots of khmer died by disease and enough food to eat.
Most economies around the world have been and/or predicted to decrease anyways. In an economic downturn, the smaller economies will always witness declines when major ones are experiencing it themselves. As for Hun Sen, what does he know? The guy is an idiot. Everything that comes out of his mouth is garbage anyways. He lacks intellect, humility and even some basic human emotions. Put Hun Sen in a debate up against any high school student and surely the student will have the upper hand.
The poor Cambodians are the ones that will hurt the most. I hope HUN SEN will invest more in the country side where most people live. If these people got the money, they will buy; thus creating a consumer demand to lift the Cambodian economy.
I agree. The government needs to invest more to develop the rural area so that it can produce more agriculture goods.
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