APD | WB: Cambodia’s economic growth remains robust

By APD writer Kin Ratha

**PHNOM PENH, April 25 (APD) ** - Cambodia’s growth is projected to remain robust, although at a slower pace than in2018, mainly due to weaker-than-expected external demand, the World Bank said.

Cambodia’s economic growth is expected at 7.0 percent in 2019, easing from 7.5 percent growth in 2018, a report from World Bank states, cited that the growth is still robust but foreign direct investment inflows, drag down the power tariffs and logistic costs, and skill labours are needed to be addressed.

The long-term outlook depends on the country’s ability to absorb rising FDI inflows, while promoting domestic investment, the report recommended. Cheaper energy and logistics costs, availability of skilled workforce, and improved supply chain linkage will be essential to remain competitive, stated the World Bank’s report on East Asia Pacific Economic Update published on Wednesday.

Andrew D. Mason, acting chief economist, East Asia and Pacific at World Bank Group, said Cambodia has to overcome the addressed challenges for a high growth rate in the future.

“Going to the future, it would be important for Cambodia to continue to strengthen the competiveness in the global market in order to continue to maintain high growth rate in the future,” Mr Andrew said. “This means perform to reduce the cost of doing business, to improve the business environment, and importantly to strengthen human capital and skills of labour force.”

“In the short term, I would say, it is not worried that we see a slight decline 7 percent growth in 2019, in the medium and the long term, there are important challenges that Cambodia faces in strengthening the business environment and strengthening the skills of population to move up the value chain and to succeed to move lower-middle income to upper-middle income,” Mr Andrew said in the televised press conference on Wednesday.

(ASIA PACIFIC DAILY)