Decline will continue, local analysts predict

Decline will continue, local analysts predict

Written by Chun Sophal Friday, 03 July 2009 14:01

Cambodian Economic Association tells lawmakers the crisis will worsen through the end of 2009 before recovery sets in

Photo by: TRACEY SHELTON

A builder works on a high-rise construction site in Phnom Penh. The sector has been among the worst hit by the downturn.

THE president of the Cambodian Economic Association, a group that promotes economic research, said the Kingdom's economy will continue to decline up until the end of the year.

In a presentation on the global economic crisis to 100 parliament members and senators, the CEA's Chan Sophal said the first five months of the year had been difficult on the economy.

And he warned that the damage inflicted on both the garment sector and tourism meant the situation was likely to worsen.
"I believe the decline in Cambodia's economy will get more and more serious by the end of the year, because garment exports declined by up to 27 percent in the first five months as against a predicted 5 percent drop," he said.

"At the same time, tourism declined 2.23 percent after it was expected to remain unchanged."

Chan Sophal said rural residents would face food shortages between July and October, because they would have no income from jobs and would be afflicted by seasonal drought.