Economy Should Do Well, Despite China Slowdown: Experts
Although China has undergone an unprecedented economic slowdown, Chinese and Cambodian officials believe it will not seriously affect Cambodia’s economy. Over the past nine months, China’s GDP grew slightly above 7 percent, its slowest pace in 13 years, and some economists expect poor performance for the remainder of 2013. But so far Cambodia, which relies heavily on Chinese investment, has not been adversely affected, officials said. … However, Chan Sophal, an independent economist, said this slowdown is unlikely to affect China’s trade or investments with Cambodia, thanks to their strong bilateral relationship. “Also, Chinese investment in Cambodia accounts for a very minimal portion of its international investments and savings,” he said. Meanwhile, Cambodia’s untapped resources and investment opportunities will continue to bring in international investors, including China, he said. … According to Chinese statistics, bilateral trade between the countries was more than $1.4 billion in the first five months of 2013, up 36 percent from the same period in 2012. Both sides are seeking $5 billion in trade by 2017. And Cambodia continues to see large numbers of Chinese visitors. In the first six months of this year, more than 230,000 Chinese have come to Cambodia, up from 149,000 over the same period last year, according to Cambodia’s Tourism Ministry. Official investment data for 2013 was not available. However, in 2012, 417 Chinese companies were investing in the country, bringing in an estimated $9.2 billion. That makes China the largest investor in the country. Most recently, China has pledged to invest in a $1.68-billion oil refinery. China has become a major donor, as well. Earlier this year, the Chinese government pledged $500 million in loans and $48 million in grants to aid in infrastructure. That was added to an estimated $2.7 billion in aid by 2012, making China the second-largest donor after Japan.
Khoun Theara
http://www.voacambodia.com/content/economy-should-do-well-despite-china-slowdown-experts-cambodia-khmer/1748785.html
