IMF predicts continued good growth for Kingdom

[geovalin]

Xueying Chen

Cambodia is expected to continue its 7 per cent growth trend for 2015, driven by strong economic activity in construction, real estate and garments, an International Monetary Fund (IMF) representative said yesterday.

The announcement was part of a consultation process conducted by the IMF for its executive board, and pegged last year’s growth at 7 per cent, but warned that rapid domestic credit growth and a stronger dollar could have adverse effects going forward.

“I think it’s important to note that given the close relationship to the exchange rate to the US dollar, strengthening of the US dollar could potentially weigh on Cambodian exports,” said Sonali Jain-Chandra, the IMF’s deputy division chief for Asia and the Pacific.

read more: http://www.phnompenhpost.com/post-weekend/imf-predicts-continued-good-growth-kingdom

[CrummyJuggler]

This will be good for a select few, not Cambodia in general. Foreigners own the garment factories and construction companies use a lot of illegal, non-cambodian workers. Regular folks will see few new jobs, price increases and stagnant wages. What are they building anyway? Western style shopping malls and condominiums that Khmers cannot afford. The UN and IMF want to say Cambodia is a success story and justify their efforts but is it?

[thaidrew]

This will be good for a select few, not Cambodia in general. Foreigners own the garment factories and construction companies use a lot of illegal, non-cambodian workers. Regular folks will see few new jobs, price increases and stagnant wages. What are they building anyway? Western style shopping malls and condominiums that Khmers cannot afford. The UN and IMF want to say Cambodia is a success story and justify their efforts but is it?

[thaidrew]

Another naysayers, from what l see on the ground there is massive growth in building of rooms and apartments and a vacancy factor of close to zero. New blocks of rooms springing up like mushrooms and try to find one that is available, like hens teeth. Sure it takes a couple of months to fully let once finished but considering that the promotion consists of a small sign, A4 size with rooms available,, pasted outside, as all the advertising, l am just amazed at how effective it is. Rents have also risen by around 80% over 2 years, which makes a mockery of 2 / 3% inflation. Tuk tuk prices have also followed the same scale, plus the number of tuk tuk's available are reportedly doubled and it is easy to see real growth.

I doubt that a slowdown in China will have much impact, after all the financial crisis of 2008 was unnoticed here.

Regards td

[smotherb]

This will be good for a select few, not Cambodia in general. Foreigners own the garment factories and construction companies use a lot of illegal, non-cambodian workers. Regular folks will see few new jobs, price increases and stagnant wages. What are they building anyway? Western style shopping malls and condominiums that Khmers cannot afford. The UN and IMF want to say Cambodia is a success story and justify their efforts but is it?

Yes, they are expanding their expat community and tourist industry. That brings in foreign direct investment--i.e., the garment and construction firms you mention. To date, the best I see in Cambodia for tourists and expats is the fact the powers that be have not overpriced foreign import duties, yet; thereby, allowing for foreign goods at reasonable prices.