IMF predicts Cambodian economic growth to be over 4% in 2010

PHNOM PENH, Sept. 23 (Xinhua) -- The economic growth of Cambodia is projected at about 4. 25 percent in 2010, the press release from International Monetary Fund mission here said on Wednesday.

But this year, as a result of the global crisis which has a larger impact on Cambodian's economy than previously anticipated, the real GDP growth is now projected to be negative 2.75 percent, IMF said.

"If we look into 2010, there are some hopeful signs that the global downturn may be bottoming up," David Cowen, a senior official for the Asia Pacific Department of IMF said at Wednesday's press conference.

"A pick up in external demand is expected to lead to a recovery in Cambodia's economy and the growth in 2010 is projected at about4.25 percent, though risks remained tilted to the downside, given uncertainties over the strength of the global recovery," he said.

Cambodian garment exports in 2009 are expected to decline by 15percent, mainly due to lower consumption in the United States. Andin tourism sector, air arrivals have fallen by double digits. Moreover, the working on large construction projects has slowed significantly in the wake of falling property prices.

"But agriculture production is a bright spot with a good harvest expected in 2009," the press release from IMF said.