Cambodia Economic Update

Cambodian Prime Minister Hun Sen said Monday that the country’s economic growth is forecast at 7% and the inflation rate is expected to go down to 2.9% this year.

“We still maintain our forecast of 7% growth and the latest forecast showed that the inflation rate is about 2.9% this year,” he said at a graduation ceremony of students at Asia-Europe University.

The growth came from the increases in garment exports, tourism and construction, he said, adding agriculture sector was also expected to see positive growth.

According to official reports, during the first eight months of this year, the country exported garment products in equivalent to US$3.54-B, a 11% rise compared with the same period last year, whilst on the tourism side, it attracted some 2.33-M foreign tourists, a 24% rise compared with the same period last year.
For construction, the country attracted investment of US$1.83-B in construction projects in the 1st 9 months of this year, a 83% rise.

The premier’s growth prediction was higher than that by international institutions. Earlier this month, the Asian Development Bank said the country’s GDP growth this year was 6.4%, and the International Monetary Fund said the growth was 6.5%, whilst the World Bank put the country’s growth at 6.6%.

Sourced: livetradingnews