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SARS affects Cambodia's economic growth: official
( 2003-05-16 15:40 ) (8)

Cambodian Finance Minister Keat Chhon expressed concern on Wednesday that the country's economic growth rate could shrink to less than five percent in 2003 becauseof the effects of severe acute respiratory syndrome (SARS), the Cambodia Daily reported Thursday.

It will be difficult to reach gross domestic product (GDP) growth of more than 4.5 percent because tourism dropped by 40 percent during the first quarter of 2003 compared to the same period last year, he said.

In 2002, Cambodia's GDP growth slowed to 4.5 percent from growth of 6.3 percent in 2001, according to figures from the AsianDevelopment Bank. The average growth rate for the country had beencloser to 7 percent, but the dip in 2002 was caused by flooding followed by drought conditions that crippled the nation's agricultural sector.

Now with tourism reeling back from the effects of SARS, it's going to be nearly impossible to reach the 7 percent growth rate goal for 2003 set by financial officials, Keat Chhon said.

Cambodia's growth rates not only rely on tourism; other industries such as the garment and agricultural sectors also contribute significantly to the Cambodia's development.