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Cambodian Export in 2009 Dropped by 18.2%; Cambodian Economy in 2010 Might Achieve Growth

By: The Mirror Posted: January-21-2010 in
The Mirror

The Mirror, Vol. 14, No. 648

“According to statistics of the National Bank of Cambodia, total export products of Cambodia to foreign markets in 2009 amounted to US$3,619 million, showing a decline by 18% or US$804.7 million, compared to 2008.

“The garment sector, the biggest source of income for Cambodia, dropped to only US$716.2 million, and other products dropped to only US$88.4 million.

“As the export of Cambodia declined in 2009, the import declined also to only $5,208 million which dropped by 17% or US$1,063 million, compared to the previous year.

“The governor of the National Bank of Cambodia, Mr. Chea Chanto, stated that the downturn of the Cambodian export resulted from the economic crisis. But Mr. Chea Chanto rejected forecasts by international financial institutions over the impacts of the global economic crisis on the Cambodian economy.

“Mr. Chea Chanto stressed that the growth for 2009 declined from 6.6% to only 2.1%, and the growth for 2010 is expected to achieve 3%.

“Previously, the International Monitory Fund forecast that Cambodia can achieve only 2.7% growth, the World Bank forecast 2.5%, and the Asian Development Bank forecast 1.5%.

“The forecast given by Mr. Chea Chanto is different from Mr. Hun Sen’s, who predicted that the economic growth for 2010 is only 2%. Mr. Hun Sen recognized the bad impact from the global economic crisis on the Cambodian economy.

“An economist of the World Bank office in Phnom Penh, Ms. Stephanie Simmonds [? - phonetic], predicted that the Cambodian economy will not achieve an accelerating growth in 2010.

“The forecast about economic growth in 2009 is being discussed but has not yet been finished. The economic growth estimated by the International Monitory was only 2.7%, by the World Bank 2.5%, by the Asian Development Bank 1.5%, and by the Royal Government of Cambodia 2%.

“The year 2009 is considered as an abnormal year. Cambodia had experienced a stable economic growth of almost 10% for 10 consecutive years, but this ended in 2009.

“The economist Ms. Stephanie stated that the major problem is that many citizens and investors had expected an continuing and fast growth, but this expectation was not true for 2009.

“Migrant workers who had planned to send their money back home could not do it. Also those who planned to sell their land for profit could not do it either.

“The same economist said that the import of cars decreased, and there is a somewhat bad trend related to debts owned to banks.

“The financial and economic downturn puts a burden on several sectors, but it heavily affects the garment and the tourism sectors.

“Some special groups suffer from this economic impact, such as tuk-tuk drivers, small restaurants, and other parts of the service sector. Only agriculture had a stable income, though it was partly affected by the typhoon Ketsana.

“As for 2010, there is a question: Is an economic recovering on the way for Cambodian workers and entrepreneurs or not? [...]

“The export of products from Vietnam to Cambodia in 2009 dropped by more than 20%, compared to 2008. The total export of Yuon [Vietnamese] products to Cambodia amounted to about US$1,7 billion in 2009, and it is expected to rise higher in 2010 to about US$2 billion.

“Facing this situation, the Ministry of Industry and Commerce of Vietnam called for a meeting with investors who export products to Cambodia, to seek solutions for the problems they encounter. In 2010, the Vietnamese government will negotiate with the Cambodian government to ease the difficulties of Vietnamese investors.” Khmer Amatak, Vol.11, #721, 20.1.2010

This article was first published by The Mirror, Vol. 14, No. 648 - Wednesday, 20.1.2010
Have a look at the last editorial - you can access it directly from the main page of The Mirror.

Norbert Klein is the Editor of The Mirror – The Mirror is a daily comprehensive summary and translation of the major Khmer language press - More about The Mirror

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