Phnom Penh (FN), May 17 –  The World Bank (WB) issued a press release Wednesday highlighting the likelihood of an increase in Cambodia’s construction and garment sectors in the future.

The report stated that, "Driven mainly by resilient construction and garment sectors, Cambodia’s economic growth remains strong, projected to reach 6.9 percent in 2017 and 2018."

“While the outlook remains favorable, there are some signs of moderation, in particular in the construction sector," said the latest Cambodia Economic Update (CEU) launched today.

Garment exports are facing strong competition.

Due to the US dollar appreciation, rising labor costs, and competition from other regional low-wage countries, growth in garment exports decelerated, expanding at 8.4 percent year-on-year in 2016, compared with 12.3 percent in 2015.  

To boost export competitiveness, the report emphasizes the importance of staying competitive through productivity improvements.

“It is encouraging to see that Cambodia’s economic growth will continue to be strong in the next few years, and that poverty rates will continue to decline,” said Inguna Dobraja, World Bank Country Manager for Cambodia.

The report also highlighted key areas that will help safeguard Cambodia’s strong growth: boosting labor productivity to compensate for rising real wages; improving public service delivery; improving public investment management legal framework and implementation capacity.