Cambodia’s central bank sounds optimistic, cautious note on economy

[rooster59]

Cambodia’s central bank sounds optimistic, cautious note on economy

PHNOM PENH: The National Bank of Cambodia has sounded an optimistic, but cautious, note on the economic prospects for the Kingdom in 2016, citing textile exports, low oil prices and increasing domestic demand as the main drivers of growth in 2015, The Phnom Penh Post reported.

The NBC released the Cambodia’s 2015 Macroeconomic Development and Prospect on Wednesday, and projected gross domestic product to grow by 6.9 per cent for 2015, climbing up slightly to 7 per cent in 2016.

While lauding the country’s economic growth, it also highlighted a few challenges, such as lower export competitiveness and the slowdown in China and European Union.

The release said that the US dollar appreciation and increase in garment sector wages was an emerging challenge for the country.

Independent economist Srey Chanthy said light industries, such as garment, clothes and shoe factories, which have so far been capital-heavy, could see outflows going into the new year.

On the NBC’s observation that a continuing slowdown in the EU and China would have an impact on Cambodia economic prospects next year, Chanthy said China’s slowdown could affect tourist arrivals in the Kingdom.

The slowdown in the euro zone will have a much stronger impact on Cambodia, as it is the key destination for Cambodia exports, he added.

Source: http://englishnews.thaipbs.or.th/cambodias-central-bank-sounds-optimistic-cautious-note-on-economy

-- Thai PBS 2016-01-02

[trogers]

Can this Central Bank explain why goods and services in the capital are in US dollars?

[Ulic]

They say 80% of a countries economy is based on consumer confidence. Central Banks

like to promote confidence. Take everything they say with a grain of salt, especially when

that country uses another countries currency for legal tender.