Cambodia GDP growth forecast to be 7.1% in 2019 (Central Bank of Cambodia)
The Central Bank of Cambodia has forecast that economic growth has remained strong so far this year, with gross domestic product expanding by 7.11 TP3T in 2019. A recent report by the Central Bank of Cambodia said economic growth this year will be supported by strong performances in exports, construction, real estate and tourism, although agriculture will slow.
Central Bank of Cambodia publishes total imports and exports and trading countries
According to the Central Bank of Cambodia, the country's total imports and exports reached $17.3 billion in the first half of this year. Exports amounted to $6.8 billion (48.8% of GDP) and imports reached $10.5 billion (73.6% of GDP). Cambodia's main export destinations were the EU (33.2% of total exports), the US (28%) and Japan (7.7%), with travel goods, textiles, clothing and footwear, bicycles and rice being the main export sub-items. Cambodia's main import destinations were China (46% of total imports), Thailand (15.6%), Vietnam (13.2%) and Japan (4.5%).
Central Bank of Cambodia Executive Director Chea Serey said economic growth remained strong, supported by growth in the garment and footwear sector, construction and tourism. Inflation was 1.9% in the first half of this year compared to 2.5% in the second half of 2018, the exchange rate was 4,038 riel to the dollar, and international reserves reached $11.1 billion, it said.
Free Trade Agreement Needed for Cambodian Economy to Grow
Chea Serey said the Cambodian economy is facing problems due to many external factors, such as increased competition abroad and a slowdown in the Chinese economy.
Chea Serey said Cambodia's preferential trade status with the European Union and the United States could be lost in the near future as the country becomes an upper middle-income economy. He also pointed out that the Cambodian government needs to conclude stronger free trade agreements with other countries in order to maintain the current economic growth.
“Currently, due to the EBA (Everything But Arms), Cambodia is not subject to tariffs on transactions with the EU, but if the EBA were to be revoked, the burden would increase by up to 12 percent.”
“Going forward, Cambodia may experience a slowdown in exports if it fails to diversify its production,” Chea Serey said.
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