Cambodia exposed to crisis in short term: World Bank

Written by George McLeod
Monday, 09 February 2009
Sources: The Phnom Penh Post

"We actually think [the Cambodian economy] is quite exposed.... This year, access to capital could be much lower. Therefore, Cambodia is going to be exposed to the crisis," said Stephane Guimbert, the World Bank's senior country economist, who was instrumental in writing the report.

State of the economy
A World Bank report paints a picture of short-term weakness and medium-term opportunity.

Narrow economic focus

• Garments, tourism, construction and agriculture have driven Cambodia's growth, and all except agriculture are vulnerable to the slowdown.

Over-dollarisation

• Ninety-four percent of GDP is in dollars, which minimises currency fluctuations, but limits the scope of monetary and exchange policy.

Industrial growth

• Industry growth has averaged 16 percent per year, with garments leading the way at 28 percent growth per year. This sector is especially vulnerable to the slowdown.

Low agriculture yields

• Yields have improved, but still lag behind regional competitors. Rice yields per hectare stand at 2.6 tonnes, versus 3.5 to five tonnes regionally.

FDI growth

• Foreign direct investment skyrocketed tenfold between 2003 and 2007, but investment was concentrated in a narrow range of sectors and remains vulnerable to the slowdown.

I, myself, haven't google and read that 99-page report yet. Yet from this brief stats, it's quite obvious but comprehensive. Will try to locate the report and have a glance on it.