MANILA - Cambodia's economic growth is expected to reach more than seven percent
over the next two years as the political situation stabilizes and conditions
become more attractive to foreign investors, Asian Development Bank (ADB)
Overall Southeast Asian economies will be Asia's engine of growth
over the next two years with strong exports and bigger spending fueling
expansion, the the bank said in its annual Asian Development Out look.
"With the world economy beginning to recover, the growth and trade
prospects for Southeast Asia are very bright,"the bank's report said.
Gross domestic product (GDP) in the sub-region is forecast to grow by
7.1 percent this year and 7.5 percent in 1995 after expanding by 6.4 percent in
Sustained high growth in Southeast Asia is a result of the
continuing policy reforms and generally sound and prudent economic policies, the
regional bank said.
Vietnam looms as a bright star, with GDP growth
projected to hit nine percent this year and 10 percent in 1995 following the
lifting of US economic sanctions. Growth was eight percent last
High rates of economic expansion in Indonesia, Malaysia and
Thailand, however, have caused infrastructural bottlenecks, the ADB
It noted inadequacies in the transport, power and
telecommunications sectors as well as shortages in skilled and semi-skilled
But the problems are not expected to curb long-term growth as they
are likely to be addressed, the Manila-based bank said.
is forecast to grow by 6.7 percent this year against 6.5 percent in 1993 and
improving to seven percent in 1995.
This hinges on strong growth in
agriculture as well as manufactured exports.
The Malaysian economy is
projected to expand by 8.6 percent this year on the back of strong domestic
demand and exports, before moderating to 8.4 percent in 1995.
improved power supply and higher investment spending, the Philippine economy
should grow four percent in 1994 and 5.5 percent in 1995.
Thailand's economy remain good, with GDP seen rising by 8.2 percent this year
and 8.5 percent in 1995.
A recovery in the world economy and
diversification of both export markets and products, particularly manufactured
goods, will spur Southeast Asia's exports, the bank said.-Reuters