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Increased exports of footwear, electrical machinery, equipment and auto parts has helped Cambodia’s economy to remain robust, but growth is projected to ease slightly to 6.8 percent in 2017, compared with 7.0 percent in 2016, says a new World Bank report. While exports of clothing and other textile

products have moderated, the medium-term outlook remains positive due to export diversification and healthy inflows of foreign direct investment, reports the latest Cambodia Economic Update.

“Cambodia appears to be on the verge of climbing up the manufacturing value chains—from garments to electronics and auto parts – and that is a very encouraging development,” said Inguna Dobraja, World Bank Country Manager for Cambodia. “With deeper structural reforms that address high electricity and logistics costs as well as skills gaps, Cambodia can boost investment, export diversification, and move closer to its development goals.” 

Real growth is projected to remain strong, expanding at 6.9 percent in 2018. A possible slowdown of the regional economy, especially China, and potential election-related uncertainties, however, pose downside risks to the outlook.

To reap the full benefits of tourism - tourist arrivals are surging - the report calls for maximizing tourism potential by diversifying tourist destinations and products, and by linking rural households to tourism supply chains. The report also recommends to assist farmers affected by low agricultural prices gain better access to markets and to diversify their production.


The Cambodia Economic Update is a biannual report that provides up-to-date information on macroeconomic developments in Cambodia, both in the short and medium term.