Recent Developments
2007 GDP (or gross monetarised product GMP)grew an estimated 18.6%, in line with the 2000/06 average of 9.5 percent. Garment exports rose almost 8%, tourist arrivals jumped nearly 35%, and construction activity doubled. With exports decelerating somewhat, the 2007 GDP growth was driven by consumption and investment. Foreign direct investment (FDI) inflows reached US$600 million (7 percent of GDP), slightly more than the country received in official aid. Domestic investment, driven largely by the private sector, accounted for 23.4 percent of GDP. Approximately 2,860 new businesses registered for operation in 2007, a 71 percent increase over 2006.
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Its unbelievable that Cambodia did not hit recession in 2009 GFC, with a weak growth rate of 0.1% and strongly recovered in 2010 with a 6% growth rate. However in 2009 GFC, Cambodia's inflation rate had a weak deflation of -0.7%.
Although risks have increased, economic prospects for 2008 remain strong. The projected 7.5 percent growth rate for 2008 reflects a mix of growth in services (mainly tourism) and construction combined with a slowdown in garment exports. Export growth, especially to the US, began to slow in late 2007 accompanied by stiffer competition from Vietnam and emerging risks (slowdown in the US economy and lifting of safeguards on China’s exports). Although exports of cash crops have grown fast in recent years, developments in the garment industry have a major impact on Cambodia’s export performance. On the other hand, Cambodia’s exporters might benefit from the depreciation of the dollar. Another risk is uncertainties in the construction sector.
Read more about this topic: Economy Of Cambodia
Famous quotes containing the word developments:
“I don’t wanna live in a city where the only cultural advantage is that you can make a right turn on a red light.
Freedom from labor itself is not new; it once belonged among the most firmly established privileges of the few. In this instance, it seems as though scientific progress and technical developments had been only taken advantage of to achieve something about which all former ages dreamed but which none had been able to realize.”
—Hannah Arendt (1906–1975)
“The developments in the North were those loosely embraced in the term modernization and included urbanization, industrialization, and mechanization. While those changes went forward apace, the antebellum South changed comparatively little, clinging to its rural, agricultural, labor-intensive economy and its traditional folk culture.”
—C. Vann Woodward (b. 1908)