Cambodia’s economic growth is forecast to continue at a healthy seven per cent for 2017-2018. Strong garment exports and from agriculture industries are at the heart of the positive outlook. Readymade garments account for about 80 per cent of the country’s total exports.

Cambodia’s exports are expected to expand 11 per cent this year, outpacing import growth at nine per cent while tourism revenues should remain strong this year and next year. The strong economic situation is due to rising number of tourist, a steady increase in foreign investment, higher consumer spending due to an increase in minimum wage for workers in the garment industry, and a decline in poverty.

But there is a need to ensure transparency and accountability, which in turn eliminates corruption in social and public affairs, and makes for continued stable economic growth. However, Cambodian exporters need to diversify from their current focus on the European Union. Brexit and the EU’s ongoing economic instability could endanger Cambodian businesses. Domestic risks stem from vulnerabilities in the financial sector, partly traceable to its rapid expansion, in particular the proliferation of microfinance institutions. There is a need to lower the cost of doing business and improve productivity growth and competitiveness.