Special Report: Global Financial Crisis
PHNOM PENH, Feb. 12 (Xinhua) -- Cambodia's economy will come under intense
pressure in 2009 as tourism, garments and construction take a hit from the
global economic slowdown, according to the International Monetary Fund (IMF).
"Cambodia's exceptional growth performance... is coming under increasing
strain from the global economic crisis and weakening external demand,"
English-language daily newspaper the Phnom Penh Post on Thursday quoted an IMF
report as saying.
Foreign direct investment will decline and foreign reserves could fall to
about 1.9 billion U.S. dollars, it said.
"Cambodia could experience a pronounced liquidity contraction and possible
large reserve loss," it said.
Meanwhile, the report predicted 4.8 percent economic growth for Cambodia in
2009, but IMF Resident Representative John Nelmes warned that the projection
will be downgraded.
"We are taking a close look at the growth projection... Since November,
when the projection was made, the global crisis has intensified," he told the
The World Bank has forecast 4.9 percent Gross Domestic Products(GDP) growth
for Cambodia this year, while the Economist Conference, which belongs to the
same company that publishes The Economist magazine, even said that it will
nose-dive to 1 percent.