Cambodia’s gross domestic product (GDP) is predicted to grow around 7.2 percent this year, buoyed up by clothing and apparel exports to the European Union (EU), according to estimates by the ANZ Group. The banking group also advised the Kingdom to diversify its economy and not just depend on one sector and one regional market for its growth. Glenn Maguire, chief economist for South Asia, Asean and the Pacific in ANZ Group said Friday that clothing and apparel exports from Cambodia still had unfettered market access to the EU and this contributed to the Kingdom’s GDP growth.
 

“Due to these exports to the EU, the country’s GDP is expected to grow to 7.2 percent in 2016 and remain stable at 7.1 percent in 2017,” said Mr. Maguire. “We remain positive that these growth rates would be maintained based on our client surveys, as they start operating in the country’s special economic zones. Our clients are also beginning to produce higher end clothing and apparel for export and this will add value to current exports to the EU,” he added.
 

The total value of exports from the Kingdom’s garment and apparel industry increased sharply this first quarter by 39.1 percent to some $2 billion compared to about $1.5 billion in the same period last year, according to figures released by the Ministry of Commerce. According to the Garment Manufacturers Association in Cambodia (GMAC), the EU accounts for about 45 percent of Cambodia's total garment exports The ANZ Group chief economist advised Cambodia to diversify its economic base in order to wean itself from depending on one sector for its GDP growth.

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