Phnom Penh  - Garment exports from Cambodia were down almost a quarter in the first eight months of the year from the same period last year as the global economic crisis cast a shadow over the country's key export earner.

Provisional figures released by the Ministry of Commerce showed total garment exports through August were worth 1.59 billion US dollars, down 22.6 per cent from last year, the Phnom Penh Post newspaper reported Tuesday.

A senior ministry official told the newspaper the reason for the drop was sharply lower spending by consumers in the United States, the largest export market for Cambodian garments.

"This year, because of the effect of the economic crisis, American people have spent less money on clothes than they did last year," said Aok Bung, secretary of state at the Ministry of Commerce.

However, in contrast with statements made earlier this year, the ministry said it believes the situation would improve in the fourth quarter and into next year.

Mean Sophea, the head of the ministry's trade preferences department, told the German Press Agency dpa on Tuesday that he expected a recovery in the US and European markets would re-establish demand.

Just three months ago, he was warning of an expected annual drop of "at least 30 per cent" in garment exports because of the global economic crisis.

"I don't expect this fourth quarter is going to be as bad as the first three quarters," he said, "and I expect there will be an improvement in 2010."

Garments are Cambodia's key foreign exchange earner, generating 3.1 billion US dollars last year. Most garments are exported to the United States and the European Union. (dpa)