Economic Growth Maintained in Cambodia Over Year 2000

Although Cambodia met the most severe flooding in 70 years in 2000, its economic growth has been maintained at 4.5 percent due to the efforts taken by the Royal government.

The total export value was amounting to 996 million US dollars, 40 percent increase comparing to 1999. Garment sector has earned 915 of 996 million dollars, which was equivalent to 92 percent of the total export product.

The import products also quickly progressed, valued at 1,200 million dollars, that is 21 percent higher than 1999.

The telecommunication, meanwhile, has been developing very fast with telephone users in the country increased to 1 percent of the population. The income from the telecommunication sector increased from 15 million dollars in 1994 to 31 million dollars in 2000.

The income of the Phnom Penh residents per person was 691 dollars a year while that for the rural people reached 197 dollar, that is nearly 5 percent up compared to 1999.

However, the public and private investment over the last year has remarkably decreased, comparing to the previous years since 1993 of the first coalition government. The investment capital was 269 million dollars last year while in 1999 it was 448 million dollars, and 2,200 million dollars in 1995.

Foreign aid was the most important factor for Cambodia's development. Half of the foreign assistance was grant aid while another half was loan credit.

The Asian Development Bank (ADB) was proud with the development of Cambodian economy, claiming that the inflation last year was very low, while exchange rate remained stable, and the price for consumption goods such as foods, meat and oil were also stable. The ADB, meanwhile, was favorable to the government's reforms in various sectors.

The Cambodian government had announced its five-year strategy for poverty reduction at the second national conference, which was ended on March 14, 2001, focusing on economic development, in particular, at rural development.

The government was committed to do its utmost to develop macro- economy, that is to keep the economic growth of 6 percent annually. And more than that, the government had also focused on social security and political stability.

The government is now also on the track to implementing its reforms on administration, economy, finance, military and justice.

In order to reach the above goal, Prime Minister Hun Sen has appealed to international community to continue assisting Cambodia so that its economic reform and social development will be achieved.






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