Cambodia’s Economic Challenge
Even as the skyline of Phnom Penh grows with the symbols of modern architecture, Cambodia’s economy still faces a host of challenges. … On the surface, Cambodia’s economy is certainly improving. In September, the IMF raised its 2012 GDP growth forecast from 6.3 to 6.5 percent and, in Asia, only China and Laos are tipped to grow faster in 2013. The World Bank’s December forecast predicts Cambodia will experience an average annual GDP growth rate of 7 percent over the next five years. But the positive statistics obscure the potentially debilitating structural issues: namely, the economy is susceptible to external shock. The World Bank forecasts a 0.5-percentage point fall in GDP growth for 2012 versus the previous year mainly due to an anticipated drop in garment and agricultural shipments, which together account for 90 percent of Cambodia’s total export earnings. …
http://thediplomat.com/2013/01/03/cambodias-failed-trickle-down-economy/
