A rice store in Phnom Penh (Source AFP/VNA)Phnom Penh (VNA) - Cambodia's economy is predicted to stay robustin the short and medium terms despite the uncertainty of preferential tariffsystem granted to the country by several trading partners, according toCambodian Minister for Economy and Finance Aun Pornmoniroth.
Hesaid Cambodia's economy is expected to grow 7.1 percent in 2019, pushing up thenation's gross domestic product (GDP) to 27.2 billion USD. The GDP per capita isprojected to be 1,706 USD next year, a rise of 9.1 percent from the 2018 figure.
The Southeast Asian country's economy has mainly been driven by garmentexports, construction and real estate, tourism and agriculture.
Theindustrial sector, mainly garment and construction, is predicted to grow by 10percent in 2019, while the service sector, mainly tourism, transport, telecom,trade and real estate, is expected to increase by 7 percent, and agricultureare projected to rise by 1.8 percent.
Pornmonirothsaid the uncertainty of the preferential tariff system some trading partnershave provided for Cambodia could pose a downside risk to the growth.
InOctober, the European Union (EU) announced that Cambodia could lose its specialtrade access to European markets under the Everything But Arms (EBA) preferentialtrade scheme after it conducts a six-month review of the country's duty-freestatus.
The EU is a major trading partner of Cambodia, especially in the textile andfootwear sectors. As a Least Developed Country, Cambodia has, for decades, exportedall products, except arms and ammunition, to European markets with duty-free.
KenLoo, Secretary General of the Garment Manufacturers Association in Cambodia, saidover 46 percent of Cambodia's total apparel and footwear exports is to the EU.
The kingdom's export to the bloc was valued at about 5.7 billion USD in 2017,according to EU data.-VNA
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