PHNOM PENH, Apr. 13 (Khmer Times) —The World Bank unveiled a new report showing robust growth in Cambodia and the East Asia region that experts believe will continue through 2015.
Through the rest of the year, the Cambodian economy expects to continue its growth streak, but at a much less rampant pace.
“Cambodia continues to experience high growth but at a slightly slower pace,” said Enrique Aldaz-Carroll, World Bank Cambodia’s senior country economist.
The real rate of growth is “expected to moderate to 6.9 percent in 2015 and 2016, as it confronts stronger competition in garment exports, continued weak agriculture sector growth, and softer growth in the tourism sector,” said Sodeth Ly, a World Bank Cambodia economist, in a statement released on Monday.
According to the World Bank, Cambodia is expected to become a lower-middle income nation by 2015.
One of the important factors for most East Asian countries is falling oil prices around the world. “Low global oil prices will benefit most developing countries in East Asia, especially Cambodia, Laos, the Philippines, Thailand, and the Pacific island countries,” the Work Bank stated in the report, named the “East Asia Pacific Economic Update”.
Construction in the country has now surpassed the garment sector to become Cambodia’s major driver of growth.
“Construction and real estate grows at a significant pace due to the stability in the country,” said Mr. Aldaz-Carroll.
Another notable aspect of the report was the growth of the European export sector.
“The European Union is now the largest export market, not the US anymore,” said World Bank Cambodia economist Sodeth Ly.
The report also predicted the effects of the impending Asean integration on Cambodia. World Bank’s East Asia chief economist Sudhir Shetty said, “Access to a larger market…Cambodia has benefited from this wider access.”