Concerns about Cambodia
09/08/2018
It said major donor nations and groups, including Australia, the European Union, Canada and the US, were worried at the landslide nature of the win that the ruling Cambodian People’s Party achieved in a general election at the end of July; it won all 125 seats and Moody’s said political analysts had quickly begun to question the election’s credibility.
Aid from Australia, the EU and the US accounted for 43% of financial assistance to Cambodia in 2016 and for 8% of total government spending, Moody’s said. Moreover, it pointed out that preferential status for exports of garments and footwear from Cambodia to the US and the EU underpinned economic growth in the Asian country.
According to Moody’s figures, garment and footwear shipments accounted for 73% of all exports from Cambodia in 2016 and revenues from those shipments contributed 36% of Cambodia’s overall gross domestic product.
Moody’s concern is that a shift in attitude towards Cambodia could have a detrimental effect on the country’s economy if it leads to a reduction in aid money or an alteration to the preferred status Cambodia’s exports enjoy at the moment.
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