Tuesday, April 1, 2014

ADB forecasts Cambodia's growth at 7% this year, stronger next year

1 April 2014

Growth in Cambodia is set to ease moderately in 2014 before picking up in 2015 on the back of buoyant exports and robust agriculture and service sectors, a new Asian Development Bank (ADB) report said Tuesday. The ADB Outlook 2014 said Cambodia's economic growth will moderate to 7% this year from 7.2% last year, with a subsequent edging up to 7.3% next year.

Despite political uncertainty and the risk of further labor market tension, Cambodia is expected to exhibit healthy economic growth over the next two years, reflecting stronger exports, growing services, and strengthening economic recovery in the major industrial economies. The expected slowdown in 2014 reflects political tensions since national elections in July 2013 and strikes for higher wages by garment workers that dented investors' confidence and disrupted some production of garments and footwear in late 2013 and early 2014.

The bank noted that net foreign direct investment inflows were buoyant at 1.3 billion U.S. dollars in 2013, though that figure represents a slight decline from the previous year. In 2014, growth in industry driven by exports of garments and footwear to US and European Union is projected to ease to 8.7% from 10.5% the year before. Services sector growth is expected to moderate to 7.1% this year from 8.4% last year. Assuming favorable weather, agriculture is seen recovering from last year's floods to grow by 4.7% from 1.8%.

According to the bank, the prospect for higher growth looks brighter for 2015, supported by stronger economic recovery predicted for the EU and US - Cambodia's main export markets.

Source:
http://www.shanghaidaily.com/article/article_xinhua.aspx?id=209875

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