NBC: Robust growth in 2016 to continue in 2017

The National Bank of Cambodia (NBC) released its review of 2016 and outlook for 2017 this week, highlighting robust growth for both the economy and banking sector for 2016. It expects this to carry forward to 2017. Cambodia achieved its anticipated 7% GDP growth in 2016 on the continued good performance of its garment, tourism, construction, and real estate sectors, the report said. Foreign direct investment continued to flow into the country, reaching 10.7% of GDP. The banking sector, on the other hand, experienced strong healthy growth last year, though at a cooler pace than in recent years. The banking sector’s assets grew by 17.4%, reaching $27.8bn, while deposits grew by 20.7% to $15.4bn. Meanwhile, credit increased by 18.3% to $17.6bn, with non-performing loan ratio finishing the year at 3.5% for banks, and 1% for microfinance institutions. Looking forward, the central bank projects that Cambodia will continue on a path of 7% GDP growth over the next year, aided by a resurgence in the agriculture and tourism sectors. However, the report warned that the economy was still vulnerable to external downside risks, particularly related to US monetary policy and decreased global trade. (Source: Phnom Penh Post, NBC)