Macroeconomic Forecast Cambodia

April 2006 | Macroeconomic Forecasts

Growth is expected to moderate to 6.3% in 2006, after recording a blistering pace in 2005. The agricultural sector will not be growing from such a low base this year and so its expansion will slow. The clothing sector should also face greater competition form other low-wage economies. This is still impressive, however, and is above the government's desired growth rate of 6%. The economy has the potential to outperform this target in the medium term, particularly if the government can convince the international community of its commitment to reform. Investors will look to Cambodia if improvements to governance and the legal system are made.

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