World Bank: Cambodia’s economy expected to grow by 6.9% in 2018

Cambodia’s economy is expected to grow by 6.9% this year according to a report issued by the World Bank. Cambodia’s forecasted growth rate was the highest of the 14 countries analyzed in the report titled “Enhancing Potential”, and this year’s forecasted growth for nine Asean countries, excluding Singapore, was 5.4%. However, the report’s authors acknowledged that several national and global risks could disrupt their prediction. The growth projection does not take into account the possibility of greater instability after the election, according to the World Bank’s chief economist for East Asia and the Pacific. Rising tensions between the US and China could have a significant impact on economic growth in Southeast Asia if leading to tariffs on Chinese exports to the US, as Southeast Asia has developed a strong value chain of production for Chinese products. The reports notes several things that boosted Cambodia’s economic growth last year, including a rise in tourist arrivals and increased agricultural output due to favorable weather conditions. (Source: Phnom Penh Post)