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Swift Growth in Key Sectors Boosts Economy

The Cambodian textile export sector has seen a 21 percent increase over the last 10 months.

Cambodian officials say the economy has now recovered from setbacks in the wake of the 2008 financial crisis, with key sectors growing much in past months.

The International Monetary Fund said it expects Cambodia’s economic growth rate to reach between 6 percent and 7 percent in 2011, a figure Cambodian officials concur with.

Growth will be based on the strengthening textile export sector, which increased 21 percent over the last 10 months; the tourism sector, which grew 15 percent; and agriculture export, up 5 percent.

“All of these sectors show that Cambodia’s economy has risen out from under the financial economic crisis the world went through in 2008 and 2009,” said Hang Chuon Naron, secretary of state for the Ministry of Economy and Finance.

The government and the IMF both agree on a 6 percent growth rate, with 4 percent inflation, he said. The IMF concluded a growth rate of 4.8 percent in 2010.

Cambodia, which relies heavily on donor aid and loans, saw a big boon to its economy in the investment from China and Vietnam, in energy, telecoms, agriculture and mining. The garment sector still relies heavily on orders from the US.