WB hails Cambodia’s economic growth

Phnom Penh (VNA) – Cambodia has succeeded in implementing an effective FDI-led development strategy, achieving 7 percent in GDP growth rates accompanied by rapidly falling poverty rate, according to the World Bank (WB).

In its latest report “Cambodia’s Future Jobs: Linking to the Economy of Tomorrow”, the bank also warned the country about existing problems.

It said although Cambodia’s current economic model is still delivering good new jobs, its success may be slowing down. About 80 percent of Cambodians aged 15 or older are working; however, 94 percent of the available jobs are in low-skilled occupations while managers and professionals account for less than 5 percent of all jobs.

WB Country Manager for Cambodia Inguna Dobraja said that the number of jobs in Cambodia grew by an average 12 percent each year during 2010-2015, a third of which were generated by foreign companies.

The report recommends a four-pronged strategy to securing more and better jobs in the future, including diversifying exports into higher value-added production, creating a domestic business environment that supports local firms’ growth, strengthening linkages between the domestic and exports sectors, and investing in workers’ skills and education.

Besides, it said Cambodia should work more to ensure macroeconomic stability, and have rational measures to cope with US dollar’s impacts on the domestic economy./.