LEAD STORY     ADB Forecasts Robust Growth for Cambodia, Warns of Deficiencies

Cambodia's economy is expected to remain vigorous over the next two years as Cambodia's main markets in Europe and United States recover, but stagnating child malnutrition rates pose a significant long-term threat to the country's development, the Asian Development Bank (ADB) says in a new report. Higher inflows of foreign direct investment contributed to strong economic growth in 2012.

Outcomes exceeded expectations in agriculture, construction, and tourism. The forecast is for further robust growth, with the trajectory expected to steepen slightly in 2014 with recovery in major export markets. Inflation subsided in 2012 and is projected to remain modest through the forecast period. Although poverty has declined, persistently high child malnutrition remains a critical development challenge.

"Private consumption, exports and investment, including strong and diversified foreign direct investment, will all drive economic development in 2013 and 2014" said Eric Sidgwick, ADB Country Director for Cambodia. "Economic growth is projected at 7.2% in 2013, picking up to 7.5% next year as recovery in Europe and the US takes hold."...

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  CAMBODIA FINANCE  
Banking Sees Robust Growth
Cambodia's banking sector has
maintained steady growth in terms
of loans and deposits along with
significant improvement last year
which continues this year, thanks to
better economic performance and
central bank's effective supervision.
Both loans and deposits have sharply
increased last year. According to the
2012 statistics recorded by the
National Bank of Cambodia (NBC),
the Kingdom's 32 commercial banks
lent a total of $5.49 billion last year,
a massive 34.2 percent growth
year on year compared with
$4.39 billion in 2011. The loans went
mostly to the trade, real estate,
construction and mortgage,
agriculture, manufacturing, tourism...
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  CAMBODIA AGRICULTURE   
A Sweet Outlook for Cambodian
Sugar
The sugar palm is a national symbol
for Cambodia. Harvested by the
country's poor for centuries, no part
of the palm tree goes to waste in a
process that fashions the tree into a
range of products.
The durable and strong leaves are
weaved into baskets, the sap is
collected and processed into a
nutritious sugar and, to this day,
villagers from local communities
come together to use the wood
from the tree's bark to build homes
for families in need.
Given palm sugar's usefulness,
it did not take long for businessmen
and agriculture experts to see the
potential of the product...
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  CAMBODIA INDUSTRY  
Foreign Industry Calls on
Cambodia as the Next 'Low-Cost'
Alternative in All Things
Manufacturing
About a decade ago, global
manufacturing firms staged a mass
exodus to Asia in search of low-cost
alternatives to increasing domestic
wage demands and operational
costs.

The consensus was the continued
development of a regional supply
chain that had formed in countries
like Vietnam and Indonesia, while
taking advantage of low wages
offered by the world's largest
exporter in China. It was an idea
that bolstered many-a bottom line,
but now things are changing...
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