Skill shortages could hold back economic growth

Cambodia’s economic growth will continue to show positive growth in 2012 despite lingering effects from last year’s floods and the struggling EU and US economies, but a serious skill shortage could drag on the Kingdom’s economic growth, according to the Asian Development Outlook 2012 report.

The report, put out by the Asian Development Bank, said Cambodia’s economic growth will moderate to 6.5 percent in 2012 from 6.8 percent in 2011, and then edge up to 7.0 percent in 2013. The ADB forecast agrees with 2012 projections by the Cambodian Finance Ministry, the International Monetary Fund and the World Bank. But it comes in higher than the 6.2 percent forecast by the Economic Institute of Cambodia.

The expected slowdown in 2012 reflects a fall in exports with only slight growth upticks in the services and agriculture sectors. The picture brightens in 2013 as Cambodia is expected to track the expected upturn in the global economic outlook.

The report warned about a growing rich-poor gap in developing Asia, saying it threatens to undermine the region’s growth and stability. It recommends governments spend more on education and health and infrastructure to reduce imbalances between developed and lagging rural areas.

To be continued....

Source: Economics Today, Issue 116, April 23-29
Link: http://www.etmcambodia.com/blog.php?article=363