PM: Cambodia to maintain 6% economic growth in 2009 [... more of Hanoi PhD's promises]

SIEM REAP, Cambodia, Feb. 16 (Xinhua) -- Cambodia will try to maintain its economic growth at 6 percent in 2009, in context of the current global financial crisis, Cambodian Prime Minister Hun Sen said here on Monday.

The annual inflation rate is expected to drop to single digit this year, he said in a keynote speech for the one-day Business Roundtable, which was hosted by the Economists Conferences to discuss ways for the kingdom to secure sustainable economic development.

"During the last decade of peace and stability, Cambodia achieved high economic growth rate at around 9.4 percent per annum," said the premier in his speech named "Over the Verge of Breakthrough."

"Amazingly, economic growth reached 10.6 percent per annum over the last 5 years, with a peak at 13.3 percent in 2005," he said, adding that the rates stood at 10.8 percent in 2006, 10.2 percent in 2007 and 7.0 percent in 2008.

The inflation rate accelerated to more than 20 percent in the middle of 2008, but dropped to 19 percent at the end of year, he told hundreds of economists, businessmen, entrepreneurs and government officials.

Meanwhile, foreign currency reserves has doubled over the last 2 and half years from 1 billion U.S. dollars in 2006 to 2 billion U.S. dollars in 2008, he said.

The above achievement has helped reduced poverty by over 1 percent annually from 47 percent in 1994 to 30 percent in 2007, he added.

The Economic Conferences is part of the Economist Group, publisher of The Economist magazine, and remains a leading provider of highly interactive meetings, including industry conferences, management events and government roundtables, for senior executives to seek new insights into importance strategic issues.

Cambodia To Face More Challenges In Next Decade [-It may help if there's a new govt other than the stale CPP's]

SIEM REAP, Feb 16 (Bernama) -- Cambodia will face more challenges in the upcoming decade and feel much harder to revitalize its economic glory of the past 10 years, said the Economic Conferences in a press release here on Monday.

"The next 10 years will be more challenging for Cambodia than the past decade, and economic growth is unlikely to be as strong," Xinhua news agency quoted the release, as saying.

The press release was issued prior to the opening of the one-day Business Roundtable hosted by the group to discuss ways for the kingdom to secure economic development.

"The outlook for 2009 and beyond looks far less promising. With the world in the midst of a deepening recession, Cambodia's economy will not escape unscathed," said Charles Goddard, editorial director of the Economist Intelligence Unit, which, like the Economic Conferences, belongs to the Economist Group, publisher of The Economist magazine.

The Economist Intelligence Unit is now forecasting that the gross domestic products (GDP) growth of Cambodia will slow from 5 percent in 2008 to around 1 percent in 2009, as its pillar industries such as garment, construction and real estate, as well as tourism will be hit by the global downturn, said the release.

"Trying to navigate this less favorable environment will throw up serious challenges for the government in the short term, not least how it should adjust fiscal policy to keep the economy growing," said Justin Wood, Southeast Asia expert at the Economist Intelligence Unit.

"The medium- and long-term challenges are just as great. Having relied heavily on 4 sectors of the economy, namely agriculture, garment, construction and tourism, to drive recent growth, the government needs to help the economy diversify," he said.

"Equally, the financial system needs to be strengthened, investment into areas like infrastructure needs to be raised, the monetary and macro-economic framework needs to be upgraded, and the management of the country's resources needs to be improved, especially its human capital through education," he added.

"With the right policies, the country does present exciting opportunities for foreign investors," the press release concluded.

Cambodia has just enjoyed a decade of blistering growth, more than doubling its per capita GDP between 1998 and 2007, thanks to political stability, deepening integration into the global trade and investment community and improved macro-economic management, according to the Economist Conferences.

Roundtable on business in cambodia

February 13, 2009
The Nation

Business leaders from both within Cambodia and overseas are due to meet in Siem Reap today to discuss the business and investment prospects of the country and the region.

In cooperation with the government of Cambodia, The Economist Conferences' "Business Roundtable" will feature a keynote address by Prime Minister Hun Sen.

The next 10 years will be more challenging for Cambodia than the past decade, and economic growth is unlikely to be as strong. Nonetheless, with the right policies, the country presents exciting opportunities for foreign investors, say the organisers, the Economist Intelligence Unit (EIU).

As a prelude to the roundtable, Charles Goddard, editorial director of the EIU and co-chair, said: "Cambodia has enjoyed a decade of blistering growth, more than doubling its per capita gross domestic product between 1998 and 2007.

"Much of this performance came about thanks to the introduction of greater political stability, a deepening integration into the global trade and investment community, and improved macroeconomic management. However, the outlook for 2009 and beyond looks far less promising. With the world in the midst of a deepening recession, Cambodia's economy will not escape unscathed."

The EIU is now forecasting that GDP growth will slow from 5 per cent in 2008 to around 1 per cent this year. Demand for Cambodia's exports, especially garments, will be hit by the downturn. Tourism, a major source of growth in recent years, will suffer too, as consumers elsewhere in the world cut back on travel and holidays. And the construction and real estate sectors will be hurt by tightening credit conditions and the pull-back of foreign investors.

Indeed, the EIU is forecasting that foreign direct investment into Cambodia in 2009 will fall sharply, after rising steadily over the past four years.


Justin Wood, director, Corporate Network, and Southeast Asia expert at the EIU, as well as co-chair of the roundtable, said: "Trying to navigate this less favourable environment will throw up serious challenges for the government in the short term, not least how it should adjust fiscal policy to keep the economy growing.

"The medium- and long-term challenges are just as great. Having relied heavily on four sectors of the economy - agriculture, garments, construction and tourism - to drive recent growth, the government needs to help the economy to diversify.

"Equally, the financial system needs to be strengthened, investment into areas like infrastructure needs to be raised, the monetary and macroeconomic framework needs to be upgraded, and the management of the country's resources needs to be improved - especially its human capital through education."

Wood concluded on a more positive note however, commenting that "The next 10 years will be more challenging for Cambodia than the past 10, and economic growth is unlikely to be as strong. Nonetheless, with the right policies, the country does present exciting opportunities for foreign investors."

The roundtable, taking place at the Angkor Palace Resort and Spa, is sponsored by Acleda Bank and Sciaroni & Associates (lead sponsors), and Jardine Matheson and TFC Capital (supporting sponsors). River Orchid is the supporting PR agency.