Cambodia’s economy is projected to expand 7 percent in 2019. (Photo: khmertimeskh.com)Phnom Penh (VNA)– Cambodia’s economy is projected to expand 7 percent in 2019, lower than therate of 7.5 percent recorded in the previous year as export moderate in linewith a fall in global demand, according to the World Bank (WB)’s report.
WB experts said that in the long-term outlook, the Cambodian economy depends onthe country’s ability to absorb rising foreign direct investment (FDI) inflowsas well as domestic investments.
Cheaper energy andlogistics costs, availability of skilled workforce, and improved supply chainlinkages are the key for the country to maintain competitiveness.
The WB attributedCambodia’s slower economic growth to the EU’s decision to start an 18-monthprocess that could lead to suspension of its trade preference “Everything ButArms (EBA)” for Cambodia from February. Losing the EBA would likely result inslower export growth as the EU accounts for more than one-third of Cambodia’sexports, including garments, footwear and bicycles.
Andrew Mason, WB ActingChief Economist for the East Asia and Pacific region, said that in order toachieve high growth in the coming years, Cambodia should work to better itscompetitive edge in the global market, which means it must strive to reduce thecost of doing business, improve its business environment, and most importantly,strengthen its human resources and labour skills.
Earlier, a group of expertsfrom the International Monetary Fund (IMF) forecast Cambodia’ economy willexpand from 6.5 to 7 percent this year. They said that the economy is facinghigher risks if the EU removes EBA scheme.-VNA
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