While remaining robust, growth in 2015eased slightly to 7.0 percent, slightly below the 7.1percent achieved in 2014. The performance of the garmentsector improved in 2015, while signs of economic moderationand weakness persisted in the tourism and agriculturesectors, respectively. Cambodia’s real growth is projectedto remain healthy at 6.9 percent in 2016, driven partly by asignificant increase in government spending. Strong garmentexports should help to offset a slowdown in agriculture,while the construction sector is expected to continue toremain an engine of growth. Downside risks to this outlookinclude potential renewed labor issues, continuedappreciation of the United States (U.S.) dollar, slowereconomic recovery in Europe, and spillovers from a slowdownin the Chinese economy. The downward trend in poverty isexpected to continue over the next few years, albeit at aslower pace, given the context of sluggish agriculture growth.
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