Sat. Mar 2nd, 2024

Cambodia’s economic growth is projected at 7.2 percent in 2013, picking
up to 7.5 percent next year as recovery in Europe and the US takes
hold, the Asian Development Bank (ADB) said in a report issued on April
9.

Private consumption, exports and investment, including strong
and diversified foreign direct investment, will all drive economic
development in 2013 and 2014, the Cambodian News Agency AKP quoted the
report as saying.

The country’s industry is expected to expand by
10.5 percent in 2013, as European demand for Cambodian products is
expected to grow steadily, supported by duty-free access to the European
market, ADB further said.

Shipments of garments and footwear to the US will likely be subdued this year but should pick up after that, it added.

According
to the report, net foreign direct investment inflows surged by an
estimated 75 percent in 2012, to 1.5 billion USD, funding new industries
including automotive parts, electronics, and processing of agricultural
products.

The services sector is expected to grow by about 7
percent, with strong growth in tourism and real estate activity, while
agriculture will likely grow by 4 percent.

Inflation is forecast
to average about 3 percent in 2013, it said, adding that robust domestic
demand is expected to result in higher inflation of 3.5 percent next
year.

However, the report warns that while Cambodia’s growth
prospects remain positive, chronic poor health and malnutrition is
stunting the growth of 40 percent of Cambodian children.

Left
unaddressed, Cambodia’s continuing high incidence of child malnutrition
will negatively affect future productivity and economic growth due to
the associated irreversible long-term damage to physical and cognitive
development, it said.-VNA

By vivian