Home / Knowledge / News / Apparel/Garments / IMF: Cambodian economic growth to slow in 2009
IMF: Cambodian economic growth to slow in 2009
10
Nov '08
"An IMF mission from Washington, D.C. visited Cambodia October 23 to November 7, 2008 to conduct the Article IV discussions.

During the visit, the mission took stock of recent economic and financial developments and held policy discussions with ministers and senior officials of the Royal Government of Cambodia on their macroeconomic, financial and structural policies.

The mission also met representatives from the business community, Cambodia's development partners, research think-tanks, labor unions and non-governmental organizations.

"Following several years of very strong performance, Cambodia's economy faces a number of challenging headwinds. After a robust start, growth momentum eased over the course of 2008, and more recently, the economy has begun to experience adverse effects from global financial stress.

Garment exports and tourist arrivals are slowing, reflecting a rapid downturn in key trading partners' economies, as well as a strain on Cambodia's competitiveness due to the significant recent appreciation of both the riel and U.S. dollar combined with high domestic inflation. Construction activity and foreign investment are slowing from high levels, also partly as a result of tighter global liquidity conditions. These factors are expected to lead to an easing in growth to 6½ percent in 2008, and a further slowing in 2009 to around 4¾ percent.

"Inflation increased sharply in the first half of 2008 reflecting higher oil and food prices, the weakness of the U.S. dollar, and domestic demand pressures. However, a reversal in these factors in the second half of 2008, led by lower oil prices, should result in a decline in headline inflation from a peak of about 26 percent year-on-year in May to around 15½ percent by year end. With domestic demand pressures projected to ease, inflation should continue trending downward next year.

"The external current account deficit (including official transfers) is estimated to have widened significantly in 2008, to 12¼ percent of GDP, reflecting the impact of higher oil prices and strong imports fueled by domestic demand. Given strong inflows in the first half of 2008, gross international reserves rose to about $2.2 billion at end-September 2008.

For 2009, the current account deficit is expected to decline to around 8 percent of GDP as the impact of lower oil prices and slowing import demand more than offsets weaker garment exports and tourism.

"The mission commended the authorities for maintaining steady budget implementation, particularly through the election period. Government revenues further increased in 2008 and are projected to reach 12½ percent of GDP, due mainly to continued improvements in tax administration. Expenditure has been maintained in line with the budget target, leading to a decline in the overall government budget deficit (excluding grants) from 3 percent of GDP in 2007 to about 2 percent in 2008.

"Fiscal policy discussions centered on the appropriate response to the projected slowdown in economic activity in Cambodia. The mission considered that, given weakening growth prospects and a projected reduction in inflation pressures, some countercyclical easing of fiscal policy would be warranted in 2009.


Must ReadView All

Building of Ethiopian textile unit by Chinese firm starts

Textiles | On 22nd Jan 2018

Building of Ethiopian textile unit by Chinese firm starts

Chinese firm Wuxi No. 1 Cotton Mill will build a textile plant in...

JD.com to invest $3.1 bn to revive industry in NE China

Apparel/Garments | On 22nd Jan 2018

JD.com to invest $3.1 bn to revive industry in NE China

To back the government’s campaign to revitalize the traditional...

SIMA makes pre-budget recommendations to Indian govt

Textiles | On 22nd Jan 2018

SIMA makes pre-budget recommendations to Indian govt

Exemption of 5 per cent goods and services tax (GST) on raw cotton,...

Interviews View All

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

January 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search