Logo of Phnom Penh Post newspaper Phnom Penh Post - World Bank predicts growth for Kingdom

World Bank predicts growth for Kingdom

Content image - Phnom Penh Post
A high-rise buildings in Phnom Penh Capital. Sreng Meng Srun

World Bank predicts growth for Kingdom

The World Bank’s economic report on East Asia and Pacific says the Cambodian economy is expected to grow at seven per cent this year, compared to 6.9 per cent last year.

The result is underpinned by upbeat investor sentiment and rising government spending, it said in its report released on Thursday.

“As global demand peaks this year, growth in Cambodia is expected to remain robust, easing modestly to 6.8 per cent next year and in 2020."

“Strong economic growth is expected to result in continued poverty reduction,” the World Bank said.

The Asian Development Bank issued a report late last month, predicting the Cambodian economy would grow seven per cent this year and next, while the International Monetary Fund projected early this week that the economy will expand 7.25 per cent this year.

The World Bank said that the export of garments, footwear, and travel goods increased 16 per cent in the first half of this year while the import of raw materials used in the garment industry grew 37 per cent during the same period.

However, the World Bank report raised some challenges and risks that Cambodia may face and which may affect economic growth.

The World Bank said to sustain rapid growth and to reduce excessive dependence on external capital, Cambodia would need to boost domestic savings and investment through the diversification of financial products, the development of domestic debt market and the strengthening of public-investment management practices.

MOST VIEWED

  • Hundreds of children in hospital with dengue

    A serious dengue fever epidemic is affecting Cambodia, with nearly 600 children hospitalised in the five Kantha Bopha Children’s Hospitals on Monday alone, a statement posted on the Kantha Bopha Foundation’s official Facebook page said on Wednesday. Because Kantha Bopha Children’s Hospitals provide

  • Gov’t to probe Chinese exports to US via Sihanoukville

    The government is investigating allegations that Chinese companies are using Chinese-owned special economic zones in Cambodia to export goods to the US and avoid tariffs, said Ministry of Commerce spokesman Seang Thay. The move comes after US embassy spokesman Arend Zwartjes said the US had

  • Banh: The Khmer Rouge worse than sanctions and pressure

    Minister of National Defence Tea Banh said on Thursday that having sanctions and external pressure placed on Cambodia was not worse than life under the brutal Khmer Rouge regime. Tea Banh, who is also deputy prime minister, was speaking to military and ruling party officials

  • Sihanoukville building collapse death toll rises to 19

    Minister of Interior Sar Kheng said on Sunday that the government will act against those responsible for the collapse of a seven-storey building in Sihanoukville on Saturday, which resulted in 19 dead and 24 injured as of Sunday evening. Sar Kheng said three Chinese nationals and one