Logo of Phnom Penh Post newspaper Phnom Penh Post - Growth prediction for 2011 goes up as economy sees a rebound

Growth prediction for 2011 goes up as economy sees a rebound

Growth prediction for 2011 goes up as economy sees a rebound

THE Ministry of Economy and Finance has raised its prediction for this year’s gross domestic product growth to 7 percent, from a previous 6 percent target.

Minister Keat Chhon, speaking yesterday at a forum for South Korean businesses held in Phnom Penh, said advances in agriculture, tourism, garments and construction had fueled the stronger economic growth.

“There are good signs of a rebound in the Cambodian economy,” he said.

The International Monetary Fund had predicted 6.8 percent growth for 2011, while the World Bank and Asian Development Bank both forecast 6 percent GDP growth this year, and the Economics Institute of Cambodia said the Kingdom was poised for 7 percent growth.

EIC senior researcher Neou Seiha said yesterday he agreed that the Kingdom’s economic growth this year was faster than originally expected.

Garments, tourism, and agribusiness are all rebounding strongly, though the construction sector still lags, he said.

Cambodia’s GDP grew by double digits for much of the past decade, he said, but added much of that came from a booming construction sector.

Agribusiness holds plenty of potential to drive Cambodia’s future growth, he said.

“If the government can push this, it will be a very important sector,” he said.

Inflation could also increase this year, he said, particularly as prices for petroleum increased.

Keat Chhon said that Cambodia’s economy had grown 5.9 percent in 2010. He pointed to a 16 percent growth in tourism, 26 percent in garment exports, and 13.5 percent in industry, as well as strong increases in the agriculture and construction sectors.

MOST VIEWED

  • Hun Sen’s China visit ‘a good opportunity’

    Prime Minister Hun Sen’s visit to Beijing on Sunday to discuss economic and trade issues presents a good opportunity for the Kingdom to strengthen Chinese ties and counter punitive measures by the West, an analyst says. The prime minister’s four-day official visit to

  • Former chief bodyguard receives royal pardon

    The former chief bodyguard of late Senate president Chea Sim has received a royal pardon nearly eight years after he was sentenced to 15 years behind bars on several charges, according to a royal decree dated November 12, last year, and obtained by The Post on Wednesday.

  • Close to the edge: Hair raising pictures from Kulen Mountain

    A new hair raising attraction on Kulen Mountain has finally opened to the public, with people flocking to the protruding cliff edge overlooking green mountainous forests to take photographs. The giant overhanging rock is situated in an area known as Mahendraparvata – an ancient city of

  • US warned not to interfere despite successful meeting

    A senior Ministry of National Defence official said the Tuesday meeting between the US Deputy Assistant Secretary of Defence for South and Southeast Asia Joseph H Felter and General Neang Phat had helped strengthen relations between the two countries’ militaries. However, a senior Cambodian People’