Illustrative image (Source: VNA)
The Cambodian economy is expected to expand 7 percent in 2018, compared to 6.9 percent last year, underpinned by external demand and upbeat investor sentiment, a new World Bank (WB) report said on October 4.
The bank's latest Cambodia Economic Update said garment, travel goods, and footwear exports increased 16.1 percent year-on-year during the first half of 2018, marking a two year high.
Tourist arrivals to Cambodia reached 3 million during the period, which represented a 13.6 percent increase year-on-year, compared with 11.8 percent in 2017, driven by a surge in the number of Chinese travellers by air.
The report said capital inflows to the Southeast Asian nation continued to increase, mainly foreign direct investment in construction projects.
Especially, investment from China sharply increased as Chinese investors wished to take advantage of low-cost labour in Cambodia to develop real estate and manufacturing sectors.
The report also highlighted main risks to Cambodia's economy, including rising protectionism and potential revision of Cambodia's preferential access to advanced economies.
Cambodia's growth is projected to ease modestly to 6.8 percent in 2019 and 2020 due to the peak of global demand, the report said./.