Economic Analysis - Global Growth Upturn Supports Export Outlook - SEPT 2017
BMI View: A pickup in global growth is supporting Cambodia ' s traditional garment exports, supporting the country ' s economic outlook. The UK ' s decision to maintain duty-free access to Cambodian exports when it leaves the EU has assuaged fears of a slowdown in the garment sector given that the UK is Cambodia ' s second largest export market. Meanwhile, a new training institute set up by the Garment Manufacturers Association of Cambodi a should help to address chronic skills shortages in the sector.
Cambodia's economy continues to grow at a robust pace, with exports rising 12% y-o-y in Q117, led by the garment sector which accounts for almost two-thirds of total export revenues. An improvement in growth in Cambodia's main export partners, particularly across the EU, which accounts for 40% of total exports, as well as efforts to increase diversification of export destinations, have been the major drivers of the increase.
Maintaining Duty-Free Access To UK Market Post-Brexit