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Cambodia Economic Update September 2013 - Resilience amidst a challenging environment



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Photo: Chhor Sokunthea/World Bank


Trends

  • Cambodia’s real GDP growth was 7.3% in 2012. It will likely experience a 7% growth in 2013.

  • The GDP growth was driven by strong growth in agriculture, exports, construction, and tourism.

  • Garment exports have expanded by 18%, as of June 2013.

  • Export strategies are helping the garment industry to grow. Cambodia is focusing on lower-end garment products for the United States market and higher-end products for the EU market.

  • The tourism sector continues its high growth trajectory.  1.79 million tourists arrived in Cambodia, between January to May 2013.

  • The monthly construction approval skyrocketed in June 2013, bringing the total construction investment approval during the first six months to $ 1.93 billion.

 Recommendations

  • Sustain economic growth by promoting diversification and enhancing competitiveness.

  • Further investments in agriculture will result into higher, more sustainable agricultural growth. This will contribute to poverty reduction.

  • Maintain banking and financial stability through effective supervision. 




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