PHNOM PENH, April 20 (Reuters) - Cambodia's economy, one of the fastest growing in Southeast Asia for a decade, may grow 4.5 percent this year after contracting 2 percent in 2009 due to the global economic crisis, the Asian Development Bank (ADB) said.
A pick-up in garment exports and tourism backed that forecast, Eric Sidgwick, the ADB's senior country economist, told a news conference on Tuesday, adding that the economy could grow around 6 percent in 2011.
However, he said Cambodia needed to diversify its economy to achieve sustainable growth in future.
"If you look at garments, the corner has now been turned," he said, noting that retail sales in the United States, a big market for clothes made in Cambodia, had risen 5.5 percent in the first quarter compared with a year before.
Tourism was also recovering and the sector had grown about 10 percent in the first quarter of 2010 compared with last year.
"And the good news there is that the Koreans and Chinese are coming back. They are both up around 30 percent in the first quarter," Sidgwick said.
A drop in visitors from those countries last year was offset to some extent by more arrivals from Laos and Vietnam. "But by and large, visitors from Laos and Vietnam spent less and stayed fewer days than counterparts from Korea and China," he added.
Construction was also recovering, although he did not forecast by how much.
Garment exports, tourism and the construction sector, which together account for over a third of GDP, all shrank last year.
In contrast, agriculture, Cambodia's fourth big growth driver accounting for some 30 percent of GDP, grew by about 4 percent because of favourable rain, and that served as a social safety net for many workers laid off in other sectors.
Diversification should involve both new products and new markets, Sidgwick said.
"If the Asian region is going to pick up, Cambodia needs to be able to take part in that to benefit from that," he said.
"You need to diversify the economic base to new areas so this means new products for export and new markets for exports -- not just the U.S. and EU, but hopefully more in the Asian region, where activities seem to be picking up much more."
(Reporting by Prak Chan Thul; Editing by Alan Raybould)
A pick-up in garment exports and tourism backed that forecast, Eric Sidgwick, the ADB's senior country economist, told a news conference on Tuesday, adding that the economy could grow around 6 percent in 2011.
However, he said Cambodia needed to diversify its economy to achieve sustainable growth in future.
"If you look at garments, the corner has now been turned," he said, noting that retail sales in the United States, a big market for clothes made in Cambodia, had risen 5.5 percent in the first quarter compared with a year before.
Tourism was also recovering and the sector had grown about 10 percent in the first quarter of 2010 compared with last year.
"And the good news there is that the Koreans and Chinese are coming back. They are both up around 30 percent in the first quarter," Sidgwick said.
A drop in visitors from those countries last year was offset to some extent by more arrivals from Laos and Vietnam. "But by and large, visitors from Laos and Vietnam spent less and stayed fewer days than counterparts from Korea and China," he added.
Construction was also recovering, although he did not forecast by how much.
Garment exports, tourism and the construction sector, which together account for over a third of GDP, all shrank last year.
In contrast, agriculture, Cambodia's fourth big growth driver accounting for some 30 percent of GDP, grew by about 4 percent because of favourable rain, and that served as a social safety net for many workers laid off in other sectors.
Diversification should involve both new products and new markets, Sidgwick said.
"If the Asian region is going to pick up, Cambodia needs to be able to take part in that to benefit from that," he said.
"You need to diversify the economic base to new areas so this means new products for export and new markets for exports -- not just the U.S. and EU, but hopefully more in the Asian region, where activities seem to be picking up much more."
(Reporting by Prak Chan Thul; Editing by Alan Raybould)
9 comments:
Jey Yo Cambodia!
Would big and legit busnesses go overthere? Or only the 3rd and 4th class busnesses?
Can real honest business survive in the country run by a foolmouth one eye and no brain dick head????
Would big and legit busnesses go overthere? Or only the 3rd and 4th class busnesses?
Can real honest business survive in the country run by a foolmouth one eye and no brain dick head????
Aha......! Wife puppet, Vietnamese son, Gambling addict. The three most potential leaders of Sam Rainsy Party. ONLY ACTIVE SUPPORTERS can modify three characters above to appropriate for each leader.
You fool 10:41PM democracy not depend on one person like ah Kwack CPP party communist motherfucker!
It' would be 10% if CPP civil servants are less corrupted..
i told you, nothing lasts forever; it goes the same with bad, chaotic situation in cambodia. cambodia is in the renaissance. only ten years ago, who would've thought that cambodia can get out of this bliss, now good, pictures speak a thousand words. welcome all to my country cambodia. make sure to do it legally, though. god bless cambodia.
amen, it's about time cambodia embraces economic prosperity by all. our country and people had suffered enough already while neighboring countries enjoy good time and good economy. now, god is turning his blessing to cambodia. enough already, we paid for our sins already, now, it's time to reap the good life in cambodia. god bless cambodia.
Don't be fast to celebrate, Cambodian economy usually controlled by a few capitalists. They are controlling the price of all products you have got.
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