Cambodia Growth Remains Robust

The International Monetary Fund said that Cambodia’s economy was expected to grow by 6.9% this year, slightly down from 7% last year, Xinhua reported. The Southeast Asian nation’s economy is traditionally supported by garment exports, tourism, construction and agriculture. Cambodia’s 2017 growth would be driven by robust construction and tourism activities, said IMF. According to government figures, garment exports growth decelerated to 5.4% year-on-year in the first half of 2017, compared with 8.4% in 2016, as tourist arrivals accelerated to 12.8% growth year-on-year during the first six months of 2017, compared with 5% in 2016. On the construction side, the country received a total investment of $4.94 billion in the first six months of 2017, up 27% over the same period last year. Construction and real estate remained strong, supported by demand for housing from Cambodia’s young and growing middle-income population, the IMF said. According to the IMF, the country’s inflation rose to 3.5% in the first half of 2017, up from 3% in 2016, mainly driven by higher food and energy prices.