Phnom Penh organizes celebration to greet the New Year

Monday, December 31, 2007
Everyday.com.kh
Translated from Khmer by Socheata

The Phnom Penh city hall will organize a celebration for Phnom Penh dwellers at the Wat Phnom park, starting 07:00 PM, on 31 December 2007, to greet 2008, the New Year. According to a communiqué issued by the city hall at the end of last week, to celebrate the New Year and the environment award the city received from an organization based in London, England, the Phnom Penh city hall will display a band for the public to enjoy and dance to its music, in the evening of 31 December 2007, starting from 07:00 PM, at the Wat Phnom park. The event will be broadcasted live on TV Channel 3 also. At midnight, fireworks will be lit, and at 5:15 AM on 01 January, there will be a greeting of the first ray of light for the New Year 2008, in front of the royal palace.

ADB foresees economic slowdown in Asia in 2008

HONG KONG, Dec. 14 (Kyodo) - Economic growth in emerging economies of East Asia next year will ease a bit from 2007 due to the slowdown of the U. S. economy, the credit outlook and rising oil and commodity prices, the Asian Development Bank said Thursday.

The Philippines-based bank, in the December edition of its semiannual Asia Economic Monitor, said economic growth in emerging East Asia will ease to 8 percent in 2008 from 8. 5 percent in 2007 as expansion in key industrialized nations moderates amid volatility in financial markets and rising oil prices.

''Slower growth but rising inflationary pressures -- despite appreciating currencies -- pose major challenges for the region's policy-makers,'' the report said.

The emerging economies were identified as China, Hong Kong, Taiwan, South Korea and the 10 members of the Association of Southeast Asian Nations, which groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

The report said China's growth is forecast to slow from 11. 4 percent in 2007 to 10. 5 percent next year if measures to cool the economy begin to take hold, the report said.

A series of tightening measures has been introduced by Beijing to curb rapid investment growth and asset-price inflation since mid-2006, but the full effect has yet to be seen.

Growth in the ASEAN region will slightly moderate to 6. 1 percent next year from 6. 3 percent in 2007, the report said, The report said a hard landing of the U. S. economy could have a significant impact on the emerging East Asia's growth as trade linkages with the major industrialized economies remain strong.

''The U. S. current account deficit this year is expected at 5. 6 percent of GDP, down sharply from 6. 2 percent last year.

Still, resulting global imbalances remain extremely large.

''To the extent that the ongoing correction in global financial markets may reflect the dynamics of underlying market forces to reduce the scale of global imbalances -- which entails a U. S. dollar depreciation, U. S. economic slowdown, and reduction of U. S. dollar asset returns -- even a gradual and thus protracted unwinding process would have significant impact on emerging East Asian markets,'' it said.

In conclusion, the report said that against a backdrop of continued uncertainty over the future growth outlook and global financial stability, ''deeper and more comprehensive'' financial sector and market reforms are required to enhance flexibility and resiliency of the region's banking and financial systems.

''Strengthening regulatory and supervisory frameworks is particularly important for emerging East Asian markets that employ relatively weak financial market infrastructure for credit risk assessment and effective risk management,'' it said.

''Formulating an appropriate policy framework to prepare for possible risks from continued global financial instability can help insulate emerging East Asia from any major deleterious effects.''

IMF: 2007 economic growth predicted at 9.5%, 2008 at 7.75%, inflation at 6.5%

IMF Statement at the Conclusion of the Staff Visit to Cambodia

September 25, 2007
Press Release No. 07/206

The following statement was issued in Phnom Penh on September 18, 2007 by John Nelmes, International Monetary Fund (IMF) Resident Representative in Cambodia:

"An IMF mission from Washington, D.C. visited Cambodia during September 12-18, 2007 to hold discussions with senior officials of the Royal Government of Cambodia on recent macroeconomic developments, fiscal and financial sector policies. The mission also met representatives from the business community and development partners.

"Macroeconomic performance in 2007 remains very strong. Real GDP is expected to grow by around 9½ percent, underpinned by continued agriculture expansion and further rapid growth of tourism, finance and construction. Garment exports continue to grow robustly, though the pace has moderated owing to increased regional competition and some softening of demand in key export markets. These factors are likely to persist in 2008, but real GDP growth is projected to remain strong at 7¾ percent.

"Inflation has increased to 6½ percent, mainly reflecting rising food prices in line with regional trends. While such external factors have largely explained the rise in inflation to date, the mission and the authorities agreed that vigilance is needed in monitoring underlying inflation pressures stemming from rapidly rising domestic demand.

"Government revenue has increased strongly, reflecting robust economic activity and significant gains in strengthening revenue administration. As a consequence, the tax revenue-to-GDP ratio is expected to rise to around 9½ percent in 2007. Expenditures have been contained, particularly capital spending, and the overall government deficit is projected to fall to 1½ percent of GDP.

"Looking forward, the mission welcomed the Government's intention to continue pursuing prudent budgetary policy next year. It noted that with further administration efforts, revenues would continue to improve, making room for higher spending on needed infrastructure and key areas for poverty reduction in line with the National Strategic Development Plan (NSDP). Public financial management reforms are proceeding well, and the mission welcomed ongoing efforts to amend the Law on Taxation to strengthen petroleum sector taxation.

"The banking sector continues to grow very rapidly, with the increase in deposits and loans indicating growing confidence in Cambodia's banking system. The authorities have been strengthening financial sector supervision, and agreed with the mission that further efforts would enhance confidence, and is needed to safeguard the soundness of the financial system."