The Asian Development Bank ( ADB) predicted that the average economic growth rate of Cambodia will stay around 9 percent in the next two years, said an ADB publication received in Phnom Penh on Tuesday.

It "will be more dependent on strengthened domestic economic activity underpinned by improved rural incomes, larger inflows of foreign direct investment, and greater government capital spending, " said the 2007 edition of ADB's flagship annual economic publication, Asian Development Outlook (ADO).

ADO noted that the economy expanded strongly by 10.4 percent in 2006 in Cambodia, reflecting robust clothing exports, tourism receipts, and construction activity.

"Export growth in Southeast Asia accelerated last year to nearly 18 percent, with exports from Cambodia, Lao People's Democratic Republic, and Vietnam rising at faster rates," said the publication.

Exports from several economies, namely Philippines, Singapore, Thailand and Malaysia, benefited from the upturn in global demand for electronics, while Indonesia, Malaysia, Myanmar, and Vietnam benefited from high prices for oil or natural gas exports, it added.

Meanwhile, the ADO said that the economic growth in Southeast Asia is projected to slow a little to 5.6 percent in 2007, due mainly to a softening in some major export markets.

"Despite strong growth in recent years, Southeast Asian economies face a number of challenges to sustainable growth, social development and the reduction of poverty," ADB Chief Economist Ifzal Ali was quoted as saying.

ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through pro-poor sustainable economic growth, social development, and good governance. Established in 1966, it has 67 members, with 48 from the region.

In 2006, ADB approved loans and grants for projects totaling 8. 5 billion U.S. dollars, and technical assistance amounting to almost 242 million U.S. dollars, said ADO.

Source: Xinhua