Phnom Penh (FN), Oct. 4 – The Cambodian economy is expected to grow at 7 percent in 2018, compared with 6.9 percent in 2017, underpinned by upbeat investor sentiment and rising government spending, says a new World Bank report in October.

“Cambodian economic growth will contribute to continued reduction in poverty. But rising fiscal deficit and collateral damage from a global trade war pose risks to Cambodia’s outlook,” World Bank said adding that “The growth is driven mainly by external demand. Garment, travel goods, footwear exports increased 16.1% during the first half of 2018, up from 8.3% in 2017.”

Despite these achievements, Cambodia still faces a number of development challenges, including the need for good quality public services, improved business environment, better land administration and natural resources management, environmental sustainability, and good governance. Going forward, the success of addressing these challenges will rest not only on maintaining macroeconomic stability and increasing economic diversification and export competitiveness, but also on improving the quality of public service delivery through more effective public spending that is more responsive to citizens’ needs, according to World Bank’s website (https://www.worldbank.org/en/country/cambodia/overview#1).

The Asian Development Bank (ADB) also forecasts economic growth for Cambodia at around 7.0% for 2018 and 2019, in line with stable growth across most of developing Asia and moderate strength in the major industrial economies, says in its press release late Wednesday; whereas, the IMF predicts Cambodia’s growth at 7.3% speaking in a meeting with National Bank of Cambodia on Thursday.

Read additional World Bank’s report below:
=FRESH NEWS