Cambodian economy achieves robust growth
The Cambodian economy grew 7.5 per cent in 2018, according to the
World Bank’s (WB) recently-released Cambodia Economic Update, which
said this better-than-expected growth was driven largely by the
rapid expansion of exports and ongoing construction boom. The
report called for filling skills gaps and investing in human capital
to underpin long-term growth.
Exports of garments, footwear and travel goods, which account for
more than two-thirds of total merchandise exports, recorded a
five-year high, rising by 17.6 per cent in 2018, up from 8.3 per
cent in 2017.
The construction, real estate and tourism sectors accounted for
about 60 per cent of total approved investment in 2018. To support
the construction boom, manufacturing of building materials,
furniture metals, and plastic products also increased rapidly, said
The European Union (EU) market, including the United Kingdom,
currently accounts for more than one-third of Cambodia’s exports,
particularly garments, footwear and bicycles. The potential end of
the country’s duty-free access to the European market for exports—or
the ‘Everything But Arms’ arrangement—will likely result in slower
exports, it cautioned.
The Cambodia Economic Update is a biannual report that provides
up-to-date information on short- and medium-term macroeconomic
developments in Cambodia.