Logo of Phnom Penh Post newspaper Phnom Penh Post - Cambodia to join SE Asian boom - ADB

Cambodia to join SE Asian boom - ADB

Cambodia to join SE Asian boom - ADB

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)

said.

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

1993.

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

year.

High rates of economic expansion in Indonesia, Malaysia and

Thailand, however, have caused infrastructural bottlenecks, the ADB

said.

It noted inadequacies in the transport, power and

telecommunications sectors as well as shortages in skilled and semi-skilled

labor.

But the problems are not expected to curb long-term growth as they

are likely to be addressed, the Manila-based bank said.

Indonesia's GDP

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.

With

improved power supply and higher investment spending, the Philippine economy

should grow four percent in 1994 and 5.5 percent in 1995.

Prospects for

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

MOST VIEWED

  • Proof giants walked among us humans?

    For years a debate has waged about whether certain bas relief carvings at the 12th-century To Prohm Temple, one of the most popular attractions at the Angkor Wat Temple Complex in Siem Reap province, depicted dinosaurs or some rather less exotic and more contemporary animal,

  • Japan bank buys major stake in ANZ Royal Bank

    Japan's largest bank acquired more than half of ANZ’s shares in Cambodia on Thursday, according to a statement from Kith Meng’s Royal Group. Japan's JTrust Bank, announced that they had acquired a 55% of stake in ANZ Royal Bank. According to a Royal Group

  • Long way to go before Cambodia gets a ‘smart city’

    Phnom Penh, Siem Reap and Battambang will struggle to attain smart city status without adopting far reaching master plans, according to officials tasked with implementing the program. The brainchild of the Association of Southeast Asian Nations (Asean), the smart city program seeks to link up

  • New US bill ‘is a violation of Cambodian independence’

    After a US congressmen introduced bipartisan legislation that will enact sanctions on Cambodian officials responsible for “undermining democracy” in the Kingdom, government officials and the ruling Cambodian People’s Party on Sunday said they regarded the potential action as the “violation of independence and sovereignty