UN-ESCAP Forecasts Cambodia’s Growth at Over 7% in 2017 and 2018

The United Nations Economic and Social Commission for Asia and the Pacific (UN-ESCAP) has predicted that Cambodia’s economy would grow by 7.1 and 7.2 percent in 2017 and 2018, respectively thanks to strong garment, industrial and agricultural sectors.

The forecast was revealed here on May 8 in the yearly report during the launch of the Economic and Social Survey of Asia and the Pacific 2017, held in the presence of Senior Minister and President of National Committee for ESCAP of the Royal Government of Cambodia H.E. Ly Thuch, Chief of UN-ESCAP’s Countries with Special Needs Section, Macroeconomic Policy and Financing of Development Division Mr. Oliver Paddison, as well as many government officials, and academics.

The report said that export of ready-made garments, accounting for about 80 percent of total exports, continued to expand well as a result of privileges enabling countries such as Cambodia to gain market access in developed countries.

Exports are set to grow further, partly aided by higher prices for key agricultural items, such as rice and rubber, it continued.

Private consumption was also supported by modest inflation, at 3 percent in 2016 and rising tourist arrivals, said the report, adding that consumer spending tends to benefit from such factors as an increase in the minimum wage for workers in the garment industry, a downward trend in the household debt level and a stable price outlook.

However, Mr. Oliver Paddison suggested that Cambodia should strengthen the e-government and fiscal development which ensure the accountability and transparency.

H.E. Ly Thuch welcomed the report, saying that the government can use it as a basic information for work and reform.

Source: Agency Kampuchea Press