Cambodia, emergent market for investment, says Le Figaro
Cambodia is among the emergent world economics with positive perspectives for investment, says French newspaper Le Figaro today in its article ‘New emerging countries offer great opportunities.’ The paper follows the recommendations of US Mark Mobius, the chairman of Franklin Templeton Investments and guru of financial markets.
Mobius says that Vietnam, Cambodia, Bangladesh, Sri Lanka and Indonesia in Asia, Colombia, Panama and Peru in South America and Estonia, Croatia and Ukraine in Europe, formed the group of the called ‘new frontiers’ countries.’
There are three characteristics of this group that makes it interested for investment: growth rates are generally high, large foreign exchange reserves and low external debt. According to Le Figaro, last year the growth rate of many of these markets have far exceeded those in developed nations and this trend should continue.
In its global outlook for 2012, the International Monetary Fund took the view that during the next five years, 10 of the 20 economies with the fastest growth will be in sub-Saharan Africa and two in North Africa. Any in the West, prevents Mobius.
Cambodian economy grew about 10 percent per year between 2004 and 2008, according to Indexmundi thanks especially to the development of the garment sector, construction, agriculture and tourist industry. The global crisis affected Cambodian grow in a very slightly slowdown in 2009, but it recovers in 2010. A new momentum began in 2011 with the entrance of more tourists and the increase in exports. During that same year the exports of rubber increased in 50 percent due to high demand from China, Malaysia and Vietnam. However, it is expected that the global crisis could weaken Cambodian exports.
Even if there is a positive growing, Cambodian challenges during the second decade of the 21st century would be to integrate its economy in an ASEAN Community, to balance exploitation and protection of its natural resources and to diversify its production. The growing economy means also a growing population where more and more young people will need job opportunities, productive skills and war on poverty.