September 24, 2009
Source: IMF
The following statement was issued in Phnom Penh on September 23 at the conclusion of an International Monetary Fund (IMF) staff mission to Cambodia:
“An IMF mission visited Cambodia during September 9-23, 2009 to conduct the annual 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 and financial policies. The mission also met a wide range of representatives from the business community and Cambodia’s development partners.
“The global economic crisis is having a larger impact on Cambodia’s economy than previously anticipated, and as a result, real GDP growth is now projected to be negative 2¾ percent in 2009.
• Garment export volumes are projected to decline by 15 percent this year, mainly due to lower consumption in the United States (Cambodia’s key garment export market) and intense competition from regional producers, who have raised their market share by strengthening competitiveness.
• In the tourism sector, air arrivals have fallen by double digits, reflecting the global recession, rising unemployment, and falling incomes in most of Cambodia’s tourism-source countries. As a consequence, overall tourism spending is sharply lower, despite the increase in same-day and land arrivals from neighbor countries.
• With few notable exceptions, work on large construction projects has slowed significantly in the wake of falling property prices. New project approvals are sharply lower, and imports of construction materials are down significantly compared to 2008, with bank lending to the property also down.
• Agricultural production is a bright spot, with a good harvest expected in 2009. Investment in rural roads and irrigation systems should raise productivity and reduce operating costs in the period ahead.
No comments:
Post a Comment