The International Monetary Fund (IMF) predicted that Cambodia's economic growth in 2005 will be 5. 0-6.0 percent, not the previous gloomy prediction of 2.5 percent, The Cambodia Daily reported Wednesday.

"The main contribution to the revision is garment export," Li Houng Lee, an IMF deputy director for Asia, was quoted as saying. The end of the worldwide garment quota system will apparently have almost no impact on Cambodia this year, he added.

"Recent developments in the markets have given Cambodia actually some breathing space which it can use to improve its competitiveness," he said, adding that the IMF also forecasts 6 percent growth in 2006.

An unanticipated construction boom in Cambodia and a less severe drought than feared had also contributed to the higher growth estimate, said IMF.

In the first quarter of 2005, Cambodia's garment export increased 16 percent compared to the same period of last year, according to data of Ministry of Commerce.

Cambodia's garment sector has grown from almost nothing in 1995 to become the country's main export industry today. It contributes about 80 percent of total exports and provides jobs to about 250, 000 people.

Source: Xinhua