Cambodia Sustains Strong Growth

Cambodia’s economy is forecast to grow 6.9% next year, compared with a projected 6.8% pace in 2017, despite risks including uncertainties over next year’s election, the World Bank said on Wednesday, Reuters reported. Cambodia’s political turbulence has had little impact on economic growth, which has hovered around 7% for the past six years. The World Bank said textile exports had moderated and the construction sector showed signs of slowing, but other manufacturing exports had increased and Cambodia was also drawing more tourists—particularly from China. “The outlook remains positive,” it said in a report. “A possible slowdown of the regional economy, especially China, and potential election related uncertainties, however, pose downside risks to the outlook.” China is now Cambodia’s biggest aid donor and investor, but western donors remain important and Cambodia has been increasingly at odds with them in the run-up to the 2018 election. Sweden said on Tuesday it was stopping some aid and the United States said it was ending election funding and would take further concrete steps.