World Bank: Growth in Cambodia Remains Strong

AKP Phnom Penh, May 18, 2017 �

Driven mainly by resilient construction and garment sectors, Cambodia’s economic growth remains strong, projected to reach 6.9 percent in 2017 and 2018, according to a new World Bank report.

While the outlook remains favourable, there are some signs of moderation, in particular in the construction sector, said the latest Cambodia Economic Update (CEU) launched yesterday.

Garment exports are facing strong completion. Due to U.S. dollar appreciation, rising labour costs, and competition from other regional low-wage countries, growth in garment exports decelerated, expanding at 8.4 percent year-on-year in 2016, compared with 12.3 percent in 2015. To boost export competitiveness, the report emphasises the importance of Staying Competitive Through Improving Productivity.

However, the moderation is expected to be offset by a recovery in the tourism sector due in part to newly established regional direct flights and a numbers of initiatives to boost arrivals, and a gradual expansion of the agriculture sector.

It is encouraging to see that Cambodia’s economic growth will continue to be strong in the next few years, and that poverty rates will continue to decline, said Ms. Inguna Dobraja, World Bank Country Manager for Cambodia. Going forward, it is important to ensure that the country invests in pro-growth public infrastructure underpinning its high growth trajectory, while also focusing on building skills for future growth areas and strengthening public sector delivery.

Source: Agency Kampuchea Press