March 24, 2011

Oil increase hits Cambodia

Rising global oil prices could increase the rate of inflation and slow Cambodia’s economic growth this year, according to a highly respected international financial expert.

The Kingdom’s economic recovery has been export-led, particularly through improving the tourism and garment sectors, and therefore could be vulnerable to a global economic slowdown caused by high-cost oil, says International Monetary Fund Asia and Pacific Department senior economist Olaf Unteroberdoerster.

“If the global oil prices stay at current levels, Cambodia’s trade deficit would worsen by about 1.5 percent of GDP relative to our October 2010 forecasts,” he told The Post via email.

Ministry of Commerce statistics show petrol was sold at about US$1.28 a litre at Phnom Penh petrol stations yesterday, up from $1.23 at the end of February, and roughly $1.07 six months ago.

Brent crude traded north of US$115 a barrel on the London-based ICE Futures Europe Exchange yesterday.

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