Cambodia: decrease of the GDP, inflation and deficit

Cambodge Soir

05-09-2008

The growth predictions for 2008 amount to 7.2%, compared to 10.1% in 2007, according to the National Bank of Cambodia.

These difficulties lie in the textile and construction sectors and are the cause of the decrease in 2008, bringing it back to 7.2%, two points below the rate of 2007, specifies the National Bank of Cambodia in a 50 page report.

The report also mentions the inflation which continues to affect the Cambodian economy, despite the government measures to control it. In one year, the prices allegedly increased with 37.2%, according to the calculations done at the end of the first semester of 2008 by the National Bank of Cambodia.

The inflation affects mainly the food, fuel and textile products.

According to the National Bank, the commercial deficit increased during the first semester. While the volume of exports has increased with 448.5 million dollars, reaching 2.4 billion dollars, the imports have increased with 584 million dollars and reach approximately 3.1 billion dollars for the six first months of the year.

The commercial deficit reaches thus 700 million dollars. Cambodia mainly exports agricultural and farm products (rice, rubber trees, fish) and imports general consumers goods and oil.