Despite a number of challenges—such as the uncertainty of upcoming elections, the envisioned E.U.-Vietnam free-trade deal and a rising US dollar—the outlook for Cambodia’s economy remains bright, the World Bank said yesterday in its latest review of the Cambodian economy.
The Kingdom’s robust economic growth will continue, “propelled by exports, construction and government consumption,” the organisation said in its Cambodia Update for October 2016.
Due majorly to the exceptional performance of the garment sector, the World Bank forecasts a 7 percent growth rate for the country next year, a slight upgrade from its last report, which set the rate at 6.9. It also nudged up its growth forecasts for 2017 and 2018 to 6.9 percent, from 6.8 percent.
“We think the growth is going to a little bit stronger thanks to the positive signs we are getting from the garment sector,” explained Miguel Eduardo Sanchez Marin, Senior Country Economist for the World Bank in Cambodia.
The update also highlighted signs of increased construction activity. It noted that the total value of approved projects more than double since 2015, while imports of key construction material were also robust.
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