Publication: Cambodia Economic Update, October 2017: Cambodia Climbing Up the Manufacturing Value Chains
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2017-10
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2017-10
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Growth remains robust, but is projected to ease slightly to 6.8 percent in 2017, comparedwith 7.0 percent in 2016. Exports of clothing and other textile products have moderated andthe construction sector is showing signs of easing. Offsetting deceleration in the exports ofclothing and other textile products, is the rising share of non-textile product exports, especiallythe exports of electrical machinery, equipment and auto parts, attracted by improvedconnectivity and access to a more reliable energy supply. Efforts to increase tourism potentialseem to be paying off with a marked increase in the arrival of foreign tourists. Real growthis projected to remain strong, expanding at 6.9 percent in 2018. The medium-term outlookremains positive, boosted by export diversification and underpinned by healthy inflows offoreign direct investment (FDI) and an improving global outlook. A possible slowdown ofthe regional economy, especially China, and potential election-related uncertainties posedownside risks to the outlook.
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“World Bank Group. 2017. Cambodia Economic Update, October 2017: Cambodia Climbing Up the Manufacturing Value Chains. © World Bank. http://hdl.handle.net/10986/28929 License: CC BY 3.0 IGO.”
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Publication Cambodia Economic Update, October 2018(World Bank, Phnom Penh, 2018-10)Economic growth remains strong, driven primarily by robust expansion in consumption and exports. Domestic demand has been boosted by higher wage growth and larger public investments, with fiscal expansion serving as stimulus. Public outlays were budgeted to increase to 24.6 percent of GDP in 2018 from 23.1 percent in 2017. At the same time, strong external demand has boosted exports of garment and footwear products, which increased 16.1 percent (y/y) during the first half of 2018 - a two year high—from 8.3 percent at the end of 2017. Tourist arrivals reached 3 million during the first six months of 2018, a 13.6 percent increase (y/y), compared with 11.8 percent in 2017, driven by a surge in tourist arrivals by air from China. Capital inflows, mainly comprising foreign direct investment (FDI) continue to increase, underpinning Cambodia's stable external position. 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