Cambodia’s GDP is revised

Jul 18th at 13:26
18-07-2012 13:26:06+07:00

Cambodia’s GDP is revised

Slumping garment exports led yesterday to an official downgrade for Cambodian’s growth outlook this year – albeit a slight one.



Minister of Economy and Finance Keat Chhon projected 6.9 per cent year-on-year gross domestic product growth for 2012, down a tenth of a percentage point from the government’s original outlook of 7 per cent.

Year-on-year garment export growth slowed from 22.8 per cent in the first quarter of the year to about 12.8 per cent in the second quarter. “The lower prediction is due to a slow increase in garment exports in April and May this year,” Keat Chhon said at a National Assembly meeting yesterday.

The United States is the prime destination of Cambodian garment exports, followed by the European Union and East Asia.

GDP predictions skipped and bounced throughout last year as the government and international financial institutions tried to appraise the effects of Western financial turmoil and a devastating flood at home.

In May, the World Bank projected 6.6 per cent GDP growth for the year. Asian Development Bank said the Cambodian economy would grow by 6.5 per cent in 2012.

The modest downgrade, however, was not cause for concern among Cambodian economists. Chan Sophal, president of the Cambodia Economic Institute, said other industries would play a stronger role in generating GDP this year.

“We’ll definitely achieve 7 per cent GDP growth this year due to the promising growth we’ve seen in agriculture and tourism, he said. “I don’t believe garments will be significantly impacted by problems in Europe. It’s my personal opinion that our products are still on the level of basic consumption in Europe. They are still needed by the people.”

Slow growth and debt crises in the United States and Europe aren’t the only obstacles to garment manufacturing growth in Cambodia this year.

Claims against garment factories – in step with strikes – doubled during the first five months of the year, and industry insiders claimed idle factory floors would lead to decreased year-on-year export growth, the Post reported last month.

phnom penh post



NEWS SAME CATEGORY

Registered business numbers increased

The number of businesses registered with the Ministry of Commerce climbed by more than 10 per cent year on year during the first half of 2012, ministry data showed.

Cambodia’s date with US biz

US companies will re-establish their commitment to Cambodia and the region today at the US-ASEAN Business Forum in Siem Reap, a high-profile meeting involving...

Vietnamese get bankrupted because of the wood chip sales to Chinese

After Vietnamese farmers tasted the bitterness from selling farm produce to Chinese merchants, it’s now Vietnamese wood chip exporters to suffer from the deals with...

Trade with Vietnam increases

A pledge in mid-June by Cambodia and Vietnam to increase bilateral trade by more than US$2.5 billion by 2015 may lead to decreased trade with Thailand, market...

Manulife to invest $20m in Cambodia

Manulife, the Canadian life insurance giant, officially announced the opening of an office in Phnom Penh yesterday and said it has plans to invest up to US$20...

Experts question new trade goal with Vietnam

Officials and experts yesterday questioned the likelihood of Cambodia and Vietnam’s proposal to hike bilateral trade by more than US$2.5 billion by 2015.

Cambodia's consumer prices decline

Consumer prices decreased month-on-month in May for the first time since statistics were available, Cambodia's National Institute of Statistics (NIS) data showed.

Challenges and chances for Cambodia investment

The third Vietnam-Cambodia Investment Promotion Conference took place yesterday in the Mekong Delta province of Kien Giang’s Ha Tien Town, chaired by Vietnamese...

EU pledges 52 mln USD to Cambodia for social, economic development

The European Union (EU) on Thursday pledged to provide a grant of about 52 million U.S. dollars to Cambodia for agriculture, decentralization process and public...

Hun Sen bound for Vietnam talks

Prime Minister Hun Sen will lead officials and business leaders in a one-day-conference at the third Cambodia-Vietnam Trade and Investment Conference in Vietnam’s...


MOST READ


Back To Top