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Cambodia Economic Update : Upgrading Cambodia in Global Value Chains (English)

Cambodia’s economy continues to show signs of robust growth, underpinned by solid export performance and strong domestic demand. Key macroeconomic data for the first six-months, however, indicate a slight deceleration of economic activity this year, compared to a strong growth performance of 7.5 percent in 2018. Garment and footwear exports, accounting for about 70 percent of total merchandise exports, grew at 17.7 percent in 2018, but eased slightly to 15.3 percent (y/y) in June 2019. Bustling construction activity has continued, reflecting a sustained appetite for investment. As a result, steel imports skyrocketed, rising 63.5 percent (y/y) in volume terms in June 2019, up from 27.7 percent in 2018. During the first half of 2019, although the reported value of newly approved investment projects accelerated, foreign direct investment (FDI) inflows, of which about 40 percent originated from China, eased. The tourism sector remained resilient; international arrival growth increased to 11.2 percent (y/y) in June 2019, compared with 10.7 percent in 2018, with almost 40 percent of foreign visitors coming from China. Rising domestic consumption fueled by a surge in FDI inflows in recent years drove import growth. Imports of petroleum products and motor vehicles rose by 91.0 percent and 18.5 percent, respectively. Thanks mainly to depressed domestic food and oil prices, inflation continued to be subdued, declining slightly to 1.4 percent (y/y) in mid-2019, down from 1.6 percent in 2018. While being softly pegged at around 4,000 riel per US dollar, the local currency depreciated slightly to 4,089 riel per US dollar in August 2019, up from 4,018 riel per US dollar in December 2018, likely due to slower capital inflows.

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Details

  • Author

    Ly,Sodeth

  • Document Date

    2019/11/01

  • Document Type

    Report

  • Report Number

    144229

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Cambodia,

  • Region

    East Asia and Pacific,

  • Disclosure Date

    2019/12/09

  • Disclosure Status

    Disclosed

  • Doc Name

    Cambodia Economic Update : Upgrading Cambodia in Global Value Chains

  • Keywords

    value-added tax; global value chain; Technical and Vocational Education; small and medium enterprise; small and medium size enterprise; Program for International Student; Cost of Doing Business; dry season rice production; access to international market; use of loan proceeds; negotiable certificate of deposit; nominal effective exchange rate; access to foreign market; transport and logistics services; direction of trade statistic; quality of logistics service; percent change; foreign currency deposit; domestic value added; dollar exchange rate; foreign value added; foreign direct investment; current account deficit; consumer price index; maternal and child; access to finance; trading partner; lack of skill; dimension of governance; short-term interest rate; Rule of Law; debt sustainability analysis; years of schooling; fuel rise; imports of petroleum; taxes on goods; barrier to participation; rules of origin; cost of electricity; skilled labor force; children under age; formal training program; current account balance; human capital; consequences of participation; primary school student; international trade tax; reduce trade; minimum capital requirement; information and communication; education worker; barriers to trade; education of worker; revenue from taxes; global economic growth; international experiences show; external public debt; scale of production; scale production; government fiscal deficit; public wage bill; financial sector risk; method of production; demand for import; creating opportunity; primary lower secondary; prudent fiscal management; real exchange rate; meeting quality standards; exporting country; central government revenue; upper secondary schooling; demand for skill; intellectual property rights; number of tourists; barrier to import; economies of scale; physical capital investment; world trade organization; length of stay; Business Enabling Environment; investment and services; international oil price; price of gasoline; access to goods; public social protection; opportunity for woman; nominal exchange rate; decline in inflation; world health organization; keeping inflation low; multimodal transport system; improved trade facilitation; tourism master plan; Agriculture Extension Services; arable land area; Student Learning Assessment; urban poverty reduction; basket of currency; global financial market; sustainable development goals; refinance of loan; domestic credit growth; financial market volatility; bank credit growth; global trade volume; business training; cost of labor; real estate developer; interest rate ceiling; stable local currency; human capital accumulation; export capital; commodity price forecast; take time; global growth prospects; production of livestock; interest rate cap; travel goods; comparator country; international arrivals; broad money; microfinance sector; rural area; labor income; banking sector; export basket; footwear export; market size; recent years; international reserve; outstanding debt; market access; trade agreement; employment growth; income ratio; denominated loans; export market; Capital Inflows; minimum wage; Exchange Rates; global demand; trade tensions; policy uncertainty

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Citation

Ly,Sodeth

Cambodia Economic Update : Upgrading Cambodia in Global Value Chains (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/707971575947227090/Cambodia-Economic-Update-Upgrading-Cambodia-in-Global-Value-Chains