Cambodia Still Attain Economic Growth in 2008
With political stability and government reforms, Cambodia has achieved tremendous economic growth in the last past three years. It was estimated around 11 percent according to the National Institute of Statistic, Ministry of Planning.
In 2008, Cambodia still expect desirable economic growth although the growth might be less than the previous year. This is according to projection of the World Bank Group in Cambodia. The World Bank’s release on 15 November 2007 has shown that the growth rate will drop by 2 percent from last year, from 9.5 percent in 2007 to 7.5 percent in 2008. This declining is resulted from the international competition on the Cambodia’s exporting, especially the garment which accounting for a huge proportion of Cambodia’s exporting. Cambodia’s garment exporting will encounter more competitive pressure when trade barriers will be excepted from China.
The growth in 2008 will be resulted from the stability of exchange rate, increasing in monetary reserve at the end of 2007 up to totaling 1.4 billions USD. Beside, this growth will be contributed as well as by the recent development of the financial and banking system in Cambodia. Currently, in Cambodia, there are 23 commercial banks and 17 micro credit institutions operating to finance businesses and provide credit to Cambodian Small and Medium Sized Enterprises.
However, the economist is still optimistic with Cambodia economic. The economist has expected that Cambodia might gain more growth than the estimation if the Cambodia macroeconomic policy and intuitional arrangement are well organized and managed. In addition, Cambodia economic growth can be prospered by proper management of businesses on Cambodia mining resources.
For more detail, please visit World Bank Group – Cambodia website.