The Asian Development Bank (ADB) has cut its estimate for Cambodia's growth this
year from 6 percent to 5 percent. The revised figure, contained in the ADB's regional
economic report released this month, is in line with a general downturn in East Asia.
However the Asia Economic Monitor notes that the reduction in the growth of Cambodia's
Gross Domestic Product (GDP) still puts it up half a percentage point on 2002.
"Among the other countries in the region, this year Cambodia is expected to
improve upon last year's performance and post GDP growth of about five percent,"
the report stated.
The ADB measured the projected growth of East Asia, which it defines as the ten ASEAN
countries as well as China and South Korea. The predicted "modest" regional
dip, lowered from 6.1 percent to 5.6 percent, is largely due to external factors.
"On the external front, the tensions over Iraq have already led to rising economic
uncertainty, decreases in business and consumer confidence and higher oil prices,"
the report stated.
Kim Saysamalen, under-secretary of state at the Ministry of Planning, said despite
Cambodia's revised growth figure, the government would still be able to meet its
poverty reduction goal. It aims to cut the percentage of people living under the
poverty line of 50 cents a day, from 36 percent to 31 percent by 2005.
"Normally we plan 6-7 percent growth a year, but if this year has gone down
to five, next year may need to go up to 7 percent in order to compensate and achieve
poverty reduction," he said.
Of the country's neighbors, Laos and Vietnam, are predicted to see growth of 5.8
percent and 6.7 percent respectively. Thailand's rate is set to drop from 4.9 percent
to 4.1 percent.
Cambodia's GDP was worth around $3.2 billion in 2001.
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