CAMBODIA: Garment growth down on weak global demand
The slump in global markets has depressed demand for Cambodian products, leading to a slowdown in garment exports and lower growth forecasts for 2012 and 2013 by the Asian Development Bank (ADB).
"Falling global demand, especially in Europe and the US, means that the industry sector will grow at a slower pace this year," said Peter Brimble, ADB senior country economist for Cambodia.
Demand by major trading partners for Cambodia's garment and footwear exports has softened this year.
US imports of garments and footwear from Cambodia growing by only 2.6% to $1.5bn in the first seven months of 2012. Likewise, imports to the EU increased by 20.9% to $798m in the first 6 months - both decelerating sharply over 2011 levels.
Forecasts in ADB's Asian Development Outlook 2012 Update predict Cambodia's gross domestic product will grow by 6.4% in 2012 and 6.8% in 2013, a slight drop from its earlier projections of 6.5% and 7%.
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