High Ranking Officials of the International Monetary Fund Forecast the Future of the Cambodian Economy – Saturday, 8.11.2008

Posted on 9 November 2008. Filed under: Week 585 |

The Mirror, Vol. 12, No. 585

“The International Monetary Fund – IMF – held a press conference about recent economic and financial problems, including problems of the Cambodian economy, in the afternoon of 7 November 2008.
“The IMF’s deputy division chief for the Asia and Pacific Department, Mr. David Cowen, stated that the IMF’s visit from Washington D.C. in Cambodia from 23 October 2008 to 7 November 2008 is considered as an ‘Article IV Consultation’ [annual consultations between the IMF with each member government]. During the mission of the IMF, it collected information about recent developments of economy and finance, and met with ministers and different high ranking officials of the business community, development partners of Cambodia, a career research institute, as well as non-government organizations.
“He added that after a period of strong growth for some years, the Cambodian economy is facing some problems in 2008. After a robust start, the momentum of growth eased over the course of 2008, and more recently, the economy begun to experience adverse effects from the global financial crisis. Garment exports will weaken and the number of tourists to Cambodia will slow down, reflecting the rapid deterioration of the economy of major trade partners, and the difficulties for Cambodia in international competition, because of the recent rising value of the Riel and the Dollar, together with high inflation in the country. Construction and foreign investments are slowing down from a high level – partly as a result of the tighter global liquidity. These factors are expected to weaken the economic growth of Cambodia which is only 6.5% in 2008, and projected as 4.75% in 2009.
“The high ranking official continued to say that inflation increased quickly in the fist half of 2008, reflecting higher prices of food and of fuel, the weak dollar, and the pressing needs in the country. However, changes of those factors in the second half of 2008 led by less higher prices of fuel, should decrease the general inflation from the highest rate of 26% in May, compared to 15.5% at the end of last year, with the pressure of local needs, assuming that inflation will be decreasing further next year.
“The external account deficit is estimated to grow sharply in 2008 – 12.25% of the gross domestic product – representing the conflict between the rising prices of fuel, and strong imports, due to local needs. Because of the strong flow of aid during the first half of 2008, the gross official reserves increased to US$2.2 billion at the end of September of 2008; as for 2009, the external accounts deficit is expected to decline related to needs, beyond the effects of weaker garment exportation and weaker tourism.
“The mission admired the authorities for maintaining a stable budget implementation, especially during the elections, while the income of the government continued to rise in 2008, and it was projected to increase to 12.5% of the gross national product because of improving the administration and taxes collection. Expenses are kept approximately on level, and the budget goal is to lower the general budget deficit of the government from 3% of the GNP in 2008 to approximately 2% in 2008.
“The discussion about taxation policies focused on the proper responses to the projected drop of economic activities in Cambodia. The mission considered that a careful relieve to the challenge of the economic cycle in the taxation policy should be done in 2009, forecasting that growth will be weak, and it is projected that the inflation pressure will drop.” Khmer Sthapana, Vol.1, #136, 8.11.2008

Newspapers Appearing on the Newsstand:
Saturday, 8 November 2008

Kampuchea Thmey, Vol.7, #1789, 8.11.2008

  • The Economic Institute of Cambodia Conducted a Surveys and Found that 59% of the Citizens Have Never Heard about the Millennium Development Goals of Cambodia [5% have read them, and 34% have only heard about them]

Khmer Machas Srok, Vol.2, #280, 8.11.2008

  • Phnom Penh Is Still Controlled by Criminals, the Wives of the Powerful [who make other women suffer because of their envy]

Khmer Sthapana, Vol.1, #136, 8.11.2008

  • High Ranking Officials of the International Monetary Fund Forecast the Future of the Cambodian Economy
  • Mr. Obama Wants to Tighten Alliance with Japan [in order to cooperate, to solve many problems, such as the financial crises, and problems in Afghanistan and on the Korean peninsula]

Koh Santepheap, Vol.41, #6494, 8-9.11.2008

  • The Signs of [the International Court of Justice in] The Hague and of UNESCO, and the Cambodian Flag Are Set Up to Protect the Preah Vihear Temple
  • The Price of Fuel Continues to Drop to US$57.62 per Barrel in London [on 6 November 2008], while in Cambodia One Litter of Fuel Costs over US$1
  • Mr. Bush and Mr. Obama Will Meet on 10 November 2008 to Discuss Serious Problems of the Nation
    Russian Leader [President Dmitry Medvedev] Suggests to Prolong the Term of the Presidency [from four to six years]

Moneaksekar Khmer, Vol.15, #3609, 8-9.11.2008

  • The Khmer Rouge Tribunal Receives Euro 1.5 Million from Germany to Continue Its Procedures

Rasmei Kampuchea, Vol.16, #4737, 8.11.2008

  • Officials [of the Cambodian Government and of the Asian Development Bank] Have Not Taken Action on the Rice Distribution Scandal That Civil Society Calls Corruption
  • Iranian Leader [President Mahmoud Ahmadinejad] Welcomes Mr. Obama’s Victory [but called on him to implement a foreign policy of no-interference into other countries’ affairs]

Have a look at the last editorial – you can access it directly from the main page of the Mirror. – And please recommend us also to your colleagues and friends.

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