Asian Development Bank (ADB) raises Cambodia's GDP growth to 5 percent for 2010 -- 0.5 percent up from its April's forecast of 4.5 percent, according to the updated Asian Development Outlook 2010 released on Tuesday.
"Cambodia's economic growth in 2010 is now forecast at 5 percent because of solid growth in garment exports and tourist arrivals," said the updated Asian Development Outlook 2010.
The U.S. Department of Commerce figures indicate that garment imports from Cambodia in the first seven months of this year increased by over 10 percent in the U.S. dollar terms, and by about 24 percent in volume terms, compared with the same period of last year, said the report.
Tourist arrivals rose by 12.4 percent in the first 6 months of 2010. However, growth in construction remains subdued and agricultural production is expected to be hurt by the late arrival of the rains this year, added the updated report.
ADB also forecast Cambodia's growth is projected at around 6 percent in 2011, reflecting forecast increases in garment exports and tourism receipts, an expansion of rice exports following a new rice production and export policy, and a pickup in non-garment manufacturing and some other services sub-sectors.
The report noticed that the inflation has been more subdued than expected in April, so that the full-year forecast for 2010 is trimmed to 4 percent. Next year, inflation is likely to edge higher to about 5 percent, in step with economic activity.
It said that the gross foreign reserves edged up to nearly 2.5 billion U.S. dollars in the first seven months of 2010 from the end of 2009, equivalent to about four months of projected imports./.