The US provided $7.79 million to the government Wednesday to aid economic growth performance, as international institutions have warned of a shrinking economy.
The funds will be used to expand USAID’s program for micro-, small- and medium-sized enterprises, which seeks to alleviate poverty by increasing productivity of family businesses.
The program has helped some 3,000 farmers increase their incomes between 100 percent and 340 percent, according to US figures.
US Ambassador Carol Rodley said the program would help thousands of Cambodians and would foster new relationships in the business sector.
Deputy Prime Minister Sok An said in a ceremony the economic crisis had diminished Cambodia’s capacity for high economic growth.
“Assistance provided by the international community is crucial for contributing to bringing high economic growth back on track,” he said.
The US expects to commit $61.8 million in assistance to Cambodia this year, as the country struggles in the wake of the global financial crisis. Some international agencies have warned the countries economy could contract this year, a stark reversal from the high rates it had enjoyed in recent years.