Cambodia’s economy grows 7.5 percent in 2018

Illustrative image (Source: khmertimeskh.com)

Hanoi (VNA) – Cambodia’s economy grew 7.5 percent in 2018, driven largely by the rapid expansion of exports and ongoing construction boom, according to the World Bank’s Cambodia Economic Update, which was released on May 6.

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 percent in 2018, up from 8.3 percent in 2017.

The construction, real estate, and tourism sectors accounted for about 60 percent of total approved investment in 2018. To support the construction boom, manufacturing of building materials, furniture metals, and plastic products also increased rapidly.

Heightened uncertainty has, however, intensified risks, the WB said.

“Improving investment climate and reducing the cost of doing business along with building skills for future economy are key priorities to sustain strong growth in the medium term. Growing evidence highlights that investment in people are essential to drive economic progress and sustainable development. Investing in people and improving the quality of Cambodia’s human capital should remain at the core of Cambodia’s aspirations to reach an upper middle-income economy by 2030,” said Inguna Dobraja, World Bank Country Manager for Cambodia.

The report also calls for filling skills gaps and investing in human capital to underpin Cambodia’s long-term growth.

The Cambodia Economic Update is a biannual report that provides up-to-date information on short- and medium-term macroeconomic developments in Cambodia.-VNA