World Bank: Cambodian Economy Growth to slow in 2009

World Bank issues grim 2009 forecast for Cambodian economy

December 11, 2008 12:44 pm by pna

PHNOM PENH, Dec. 11 — The World Bank has issued a bleak assessment for the Cambodian economy, predicting only 4.9 percent growth in 2009, national media reported Thursday.

Cambodia's reliance on South Korean tourism and U.S. garment sales would expose the country to crisis-hit economies, Stephane Guimbert, the World Bank senior economist for East Asia and Pacific, was quoted by the Phnom Penh Post as saying.

"Compared to many other countries in the region, (Cambodia) is even more open to the external environment," she said.

Guimbert said that though the country has benefited from its open policies, the slow global economy will cut demand for Cambodian exports and reduce tourism arrivals and foreign investment.

Meanwhile, the World Bank put 2008 growth at 6.7 percent, adding that remittances, which made up four percent of national income last year, would also fall.

However, Ouk Rabun, secretary of state for the Finance Ministry, told the National Assembly Monday that 2009 growth would hit 6.5 percent and inflation would drop to 10 percent. (PNA/Xinhua)