Logo of Phnom Penh Post newspaper Phnom Penh Post - Cambodia's economy on growth path: ADB

Cambodia's economy on growth path: ADB

A person waters a vegetable crop at a farm in Phnom Penh's Chroy Changvar district earlier this year.
A person waters a vegetable crop at a farm in Phnom Penh's Chroy Changvar district earlier this year. Pha Lina

Cambodia's economy on growth path: ADB

Despite uncertainty over the global economy, which has been stymied by a continued weak recovery in many developed economies, Cambodia will continue on its projected growth rate for the rest of this year and into 2017, buoyed by sustained growth from China and India, the Asian Development Bank (ABD) said yesterday in a reiteration of its previous growth forecast.

Cambodia is anticipated to retain its growth forecast of 7 percent this year and 7.1 percent in 2017 – anchored by continued growth in the garment and footwear sector, ADB said in an update to its flagship annual economic publication, Asian Development Outlook 2016.

“The outlook for Cambodia’s economy, after attaining lower-middle-income status in July, remains robust with exports from the garment and footwear industry rising by 9.4 percent in the first half of this year,” Samiuela Tukuafu, ADB’s country director for Cambodia, said in a press release accompanying the update.

“While growth in credit sector moderated to 28.1 percent year-on-year in June 2016, it still indicates buoyant domestic demand,” he said, adding that better weather this year should provide a “mild” recovery for the Kingdom’s agricultural sector that has struggled with extended drought.

The announcement also noted that the Cambodian government continued to increase spending by 15.6 percent during the first half of this year, providing higher civil society wages on the back of increased tax collection.

Meanwhile, inflation forecasts slightly increased due to an expected rise in global oil prices, averaging a projected 3.4 percent in 2017.

The update noted that minimal changes in Cambodia’s account deficit and an increase of exports compared to imports – a gap that is expected to continue to narrow next year – would maintain “Cambodia’s sound external position”.

The World Bank formally reclassified Cambodia as a lower-middle-income status in July, a move that some economists feared would hamper the inflow of foreign aid and preferential trade preferences that the Kingdom enjoys.

MOST VIEWED

  • PM to vet NY holiday dates

    The Ministry of Economy and Finance submitted a letter to Prime Minister Hun Sen asking him to formally set a five-day national holiday from August 17-21 to make up for the Khmer New Year holiday in April that was postponed. Finance minister Aun Pornmoniroth sent

  • Cambodia rejects UN rights claim

    Cambodia's Permanent Mission to the UN Office in Geneva on Friday hit back at David Kaye, the UN special rapporteur on the Promotion and Protection of the Right to Freedom of Opinion and Expression after he raised concerns over the repression of free speech and

  • Snaring may spawn diseases

    The World Wildlife Fund (WWF) has warned that snaring of animals has become a crisis that poses a serious risk to wildlife in Southeast Asia and could spawn the transmission of zoonotic diseases to humans. Its July 9 report entitled Silence of the Snares: Southeast Asia’

  • Ex-party leader, gov’t critic named as secretary of state

    A former political party leader known for being critical of the government has been appointed secretary of state at the Ministry of Rural Development, a royal decree dated July 9 said. Sourn Serey Ratha, the former president of the Khmer Power Party (KPP), told The Post

  • Residence cards set for over 80,000 immigrants

    The Ministry of Interior plans to grant residence cards to more than 80,000 immigrants to better keep track of them. The ministry announced the plan on July 10, following the results of an immigration census. “An inter-ministerial committee and many operational working groups have been set up

  • Kingdom produces PPE gear

    Medical supplies from Cambodia have been donated to member countries of the Asian Development Bank (ADB) to assist in the fight against Covid-19, said an ADB report published on July 9. The report stated that the supplies were donated as a response to global efforts to

  • Kingdom, US vow stronger ties

    At an academic forum on Saturday to celebrate 70 years of Cambodia-US diplomatic ties, Cambodian researchers and officials expressed hope of encouraging US investments and for that country to deepen and improve its bilateral relations. Held at the Royal Academy of Cambodia, it reviewed the past 70

  • Fifteen Cambodians from Saudi get Covid-19

    The Ministry of Health on Sunday confirmed 15 more imported cases of Covid. The 15 men ‒ all Cambodian aged 21 to 33 ‒ arrived from Saudi Arabia on Friday via a connecting flight in Malaysia. They were travelling with 79 other passengers, three of them women. The ministry said 80 of the

  • Ministry requests school opening

    The Ministry of Education, Youth and Sport on Thursday said it would request a decision from Prime Minister Hun Sen to allow a small number of schools to reopen next month. Ministry spokesman Ros Soveacha said if the request is granted, higher-standard schools will reopen

  • Kingdom eyes India FTA, China deal set for August

    Cambodia is studying the possibility of establishing a bilateral free trade agreement (FTA) with India to open a new market with the second-largest regional economy. This comes as an FTA with China is scheduled to be signed next month while similar negotiations with South Korea