World Bank Sees Continued Strong Growth

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Khmer Times/Sok Chan

The World Bank forecasts Cambodia's economy to grow at a robust 6.9 percent this year, fuelled by increased government spending, strong garment exports and the booming construction sector, but down from 7.0 percent last year as the drought hits agriculture and China's slowdown impacts.

Senior economist Ly Sodeith said the Chinese slowdown – its worst growth in a quarter of a century – would hit tourism and foreign direct investment. China is the biggest foreign investor in the Kingdom.

"The drastic drop in China's economic growth will hit Cambodia – but it's not yet had a big impact," he said. Inflation is seen at modest 2.8 percent. "Cambodia's main export markets are the European Union and the US. If those markets grow, Cambodia's economy will be strong based on exports.

"But if they have problems, Cambodia should focus on agriculture, although climate change is causing problems here and around the globe." Agriculture grew an average 5.5 percent annually from 2005 to 2012, but just 0.3 percent and 0.2 percent year-on-year in 2014 and 2015, the report said, mainly due to the impact of weather conditions, especially intermittent rainfall.

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