World Bank: Cambodia’s Economic Growth Still Broadly Positive

The Cambodian economic growth is expected to remain broadly positive in the next three years at the same rate of 6.0 percent from 2016-2018, according to the World Bank's Outlook report for East Asia.

According to the report released recently, Cambodia's growth slightly eased to 6.9 percent in 2016, compared to 7.0 percent in 2015. Construction activity remains vibrant, while garment exports moderated, as Cambodia's external competitiveness is being constrained by U.S. dollar appreciation, rising labour costs and competition from other regional low-wage countries. Due largely to better weather conditions, agricultural production improved in 2017. Meanwhile, growth in tourist arrivals, at 5 percent in 2016, remains modest, partly due to limited success in diversification of tourist attraction sites beyond the Angkor Wat complex. Growth in Cambodia is expected to remain strong, at 6.9 percent in 2017 and 2018, with higher public spending and the expansion of agriculture and tourism offsetting moderation in construction and garments.

"It is encouraging to see that Cambodia's economic growth will continue to be strong in the next few years," said Inguna Dobraja, the World Bank Country Manager for Cambodia Office.

Going forward, it is important to boost productive investments in pro-growth and pro-poor sectors and to ensure that benefits of future growth are shared among all Cambodians, she added.

The World Bank's outlook on Cambodia's growth is a little bit lower than Asian Development Bank's Asian Development Outlook 2017 (ADO) released early this month.

ADO said the country's gross domestic product (GDP) is expected to increase to 7.1 percent in 2017 and 2018-slightly higher than an estimated 7.0 percent in 2016.

Source: Agency Kampuchea Press