Cambodia to grow 7% in 2014: ADB
Growth in Cambodia is set to ease moderately in 2014 before picking up in 2015 on the back of buoyant exports and robust agriculture and service sectors, a new Asian Development Bank (ADB) report said on April 1.
The ADB Outlook 2014 said Cambodia’s economic growth will moderate to 7 per cent in 2014 from 7.2 per cent in 2013, with a subsequent edging up to 7.3 per cent in 2015.
“Despite political uncertainty and the risk of further labor market tension, Cambodia is expected to exhibit healthy economic growth over the next two years, reflecting stronger exports, growing services, and strengthening economic recovery in the major industrial economies,” said Eric Sidgwick, ADB country director for Cambodia.
The expected slowdown in 2014 reflects political tensions since national elections in July 2013 and strikes for higher wages by garment workers that dented investors’ confidence and disrupted some production of garments and footwear in late 2013 and early 2014, the bank’s outlook said.
“These uncertainties could dampen investment and weigh on tourism, construction and real estate activity this year,” it said.
The bank noted that net foreign direct investment inflows were buoyant at $1.3 billion in 2013, though that figure represents a slight decline from the previous year. In 2014, growth in industry driven by exports of garments and footwear to the US and European Union is projected to ease to 8.7 from 10.5 per cent the year before, it said.
Services sector growth is expected to moderate to 7.1 per cent this year from 8.4 per cent last year, it added. Assuming favourable weather, agriculture is seen recovering from last year’s floods to grow by 4.7 from 1.8 per cent.
According to the bank, the prospect for higher growth looks brighter for 2015, supported by stronger economic recovery predicted for the EU and the US, Cambodia’s main export markets.
Average inflation is anticipated to edge up to 3.5 per cent, and remain around this rate in 2015 as economic growth picks up, the bank said.
Cambodian Prime Minister Hun Sen said in February that the government predicted that the economic growth would exceed 7 per cent in 2014 as inflation is projected to remain low at 3-4 per cent.
Growth in Cambodia is set to ease moderately in 2014 before picking up in 2015 on the back of buoyant exports and robust agriculture and service sectors, a new Asian Development Bank (ADB) report said on April 1. The ADB Outlook 2014 said Cambodia's economic growth will moderate to 7 per cent in 2014 from 7.2 per cent in 2013, with a subsequent edging up to 7.3 per cent in 2015. "Despite political uncertainty and the risk of further labor market tension, Cambodia is expected to exhibit healthy economic growth over the next two years, reflecting stronger exports, growing services,...
Growth in Cambodia is set to ease moderately in 2014 before picking up in 2015 on the back of buoyant exports and robust agriculture and service sectors, a new Asian Development Bank (ADB) report said on April 1.
The ADB Outlook 2014 said Cambodia’s economic growth will moderate to 7 per cent in 2014 from 7.2 per cent in 2013, with a subsequent edging up to 7.3 per cent in 2015.
“Despite political uncertainty and the risk of further labor market tension, Cambodia is expected to exhibit healthy economic growth over the next two years, reflecting stronger exports, growing services, and strengthening economic recovery in the major industrial economies,” said Eric Sidgwick, ADB country director for Cambodia.
The expected slowdown in 2014 reflects political tensions since national elections in July 2013 and strikes for higher wages by garment workers that dented investors’ confidence and disrupted some production of garments and footwear in late 2013 and early 2014, the bank’s outlook said.
“These uncertainties could dampen investment and weigh on tourism, construction and real estate activity this year,” it said.
The bank noted that net foreign direct investment inflows were buoyant at $1.3 billion in 2013, though that figure represents a slight decline from the previous year. In 2014, growth in industry driven by exports of garments and footwear to the US and European Union is projected to ease to 8.7 from 10.5 per cent the year before, it said.
Services sector growth is expected to moderate to 7.1 per cent this year from 8.4 per cent last year, it added. Assuming favourable weather, agriculture is seen recovering from last year’s floods to grow by 4.7 from 1.8 per cent.
According to the bank, the prospect for higher growth looks brighter for 2015, supported by stronger economic recovery predicted for the EU and the US, Cambodia’s main export markets.
Average inflation is anticipated to edge up to 3.5 per cent, and remain around this rate in 2015 as economic growth picks up, the bank said.
Cambodian Prime Minister Hun Sen said in February that the government predicted that the economic growth would exceed 7 per cent in 2014 as inflation is projected to remain low at 3-4 per cent.
