Moody’s cautious on GDP growth, warns of credit bubble

[geovalin]

Cam McGrath

 

Global credit rating agency Moody’s Investors Services said yesterday that Cambodia’s B2/stable sovereign credit rating was supported by its robust economic growth and modest debt burden, but its narrowly focused industrial sector and low incomes were weighing on overall economic strength. In addition, the fast pace of credit growth, though slowing over the last year, could pose financial stability risks.

 

Moody’s projected in a report to investors that Cambodia’s real economic growth will edge lower to 6.8 per cent in 2016 after clocking in at 7 per cent in 2015, citing external factors expected to dampen foreign revenue inflows.

 

“Garment exports and tourism, key drivers of growth, face headwinds from lacklustre global demand,” it said. “Slowing growth in China . . . will also have negative implications for Cambodia’s economy, given China’s importance as a source of investment, trade and concessional loans.”

 

read more http://www.phnompenhpost.com/business/moodys-cautious-gdp-growth-warns-credit-bubble

 

 

-- © Copyright Phenom Pen Post 26/08

[williamgeorgeallen]

6.8. impressive. thailand needs to look to them to see what they are doing right. probably not.

[chiang mai]

1 minute ago, williamgeorgeallen said:

6.8. impressive. thailand needs to look to them to see what they are doing right. probably not.

 

Indeed, Thailand could follow Cambodia's example and get rid of all of it's infrastructure, export markets, foreign currency reserves, banking system and global businesses and then look to Cambodia and examine to see what it is doing right! FWIW Cambodia's GDP per capita PPP is around 3,100 whilst Thailands is about 15,400. Get the picture.