Cambodia continues to enjoy robustgrowth, albeit at a slightly slower pace. Real growth in2014 is estimated to have reached 7.0 percent. The garmentsector, together with construction and services, inparticular finance and real estate, continues to propelgrowth. However, there are signs of weaknesses in garmentand agricultural production that are slightly slowinggrowth. Overall macroeconomic management remainsappropriate. Fiscal consolidation continues with furtherimprovements in revenue collection resulting from enhancedadministration. Poverty continues to fall in Cambodia(poverty headcount rate in 2012 was 17.7 percent) althoughthe pace of poverty reduction has declined significantly.Cambodia’s real growth rate is expected to moderate to 6.9percent in 2015 and 2016, as it confronts strongercompetition in garment exports, continued weak agriculturesector growth, and softer growth in the tourism sector.Recent developments include: the garment sector continues tobe one of Cambodia’s main engines of growth, the externalposition remains stable, supported by healthy foreign directinvestment inflows, underpinning the overall macroeconomicstability, Exchange rate targeting continues to supportprice stability, inflation has eased significantly withcontinuing depressed food prices and the recent decline inoil prices, and financial deepening continues, supportingeconomic expansion as deposit and credit growth acceleratedquickly in 2014.
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