Clear Skies : Cambodia Economic Update, October 2014

This issue of the Cambodia economic update covers the following selected issues: 1) making the most of the Cambodian rise sector; and 2) creating opportunities for firms as reflected in findings from the investment climate assessment. For FY2014 economic growth held up well despite domestic uncertainty and instability in neighboring countries. Real growth is estimated to reach 7.2 percent, driven by the garment, construction, and services sectors. Overall macroeconomic management has been good with fiscal consolidation underpinned by improved revenue administration. In 2015 with the expectation of renewed confidence and the return of political stability after ending a yearlong political deadlock in July 2014, bolstered by a strengthening global economy, Cambodia's real growth rate is expected to reach 7.5 percent, similar to that of 2013. The downside risks to the projected robust growth are a potential recurrence of labor unrest, natural disasters, especially the possibility of heavy floods, as well as regional political uncertainty. Concerning rice production, growth decelerated in 2013 highlighting the importance of revitalizing the rice sector so it becomes once again a key engine of GDP growth. While the milled-rice export market is steadily expanding and increasing the number of destination markets, the milling and transport costs of Cambodian rice make it loose the competitiveness it has at farm gate prices. The Royal Government of Cambodia (RGC) has set a very legitimate target of one million tons of milled rice exports that matters tremendously for poverty reduction and shared prosperity. Concerning the investment climate assessment findings, RGC's new five-year Rectangular Strategy III continues to prioritize improving the business environment to help diversify and increase value-added in production. The current period of robust growth represents an opportunity to make improvements to the business environment that will attract long-term investors. Proposed next steps in reforming the business environment include: a) addressing the high cost of electricity; b) automating government processes; c) encouraging new investment, particularly in special economic zones; d) continuing improvements to trade facilitation; e) completing the draft Competition Law; f) designing and implementing a system of incentives for business registration; and g) focusing on implementation and enforcement.

Bibliographic Details

Main Author:	World Bank Group
Format:	Economic Updates and Modeling biblioteca
Language:	English en_US
Published:	Washington, DC 2014-10
Subjects:	ACCOUNTING, ADVANCED ECONOMIES, AGRICULTURAL COMMODITIES, AGRICULTURAL COMMODITY, AGRICULTURAL PRACTICES, AGRICULTURAL PRODUCTION, AGRICULTURE, AUDITS, BANK FINANCING, BANKING SECTOR, BANKING SUPERVISION, BANKING SYSTEM, BENEFICIARIES, BORROWING COSTS, BROAD MONEY, BUSINESS CLIMATE, BUSINESS ENVIRONMENT, CAPITAL FORMATION, CAPITAL INFLOWS, CAPITAL INVESTMENT, CAPITAL STOCK, CENTRAL BANK, CODE OF CONDUCT, COLLATERAL, COMMODITY EXPORTS, COMMODITY PRICES, CONSUMER PRICE INDEX, CONSUMERS, CONSUMPTION GOODS, CPI, CREDIT GROWTH, CURRENT ACCOUNT, CURRENT ACCOUNT BALANCE, CURRENT ACCOUNT DEFICIT, DEBT, DEBT BURDEN, DEBT SERVICE, DEBT SERVICE RATIO, DEBT SUSTAINABILITY, DEPOSIT, DEPOSIT RATE, DEPOSITS, DEVELOPED COUNTRIES, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DEVELOPMENT STRATEGY, DOMESTIC BANK, DOMESTIC CREDIT, E-COMMERCE, ECONOMIC ACTIVITY, ECONOMIC DEVELOPMENT, ECONOMIC DEVELOPMENTS, ECONOMIC EXPANSION, ECONOMIC GROWTH, ECONOMIC IMPACT, ECONOMIC SECTORS, ENVIRONMENTAL, ENVIRONMENTS, EXCHANGE RATE, EXCHANGE RATE TARGETING, EXCHANGE RATES, EXPANSIONARY FISCAL POLICY, EXPENDITURE, EXPORT COMPETITIVENESS, EXPORT GROWTH, EXPORT MARKET, EXPORTER, EXPORTERS, EXPORTS, EXTERNAL DEBT, EXTERNAL FINANCING, FARMS, FEDERAL RESERVE, FEDERAL RESERVE SYSTEM, FINANCIAL CRISIS, FINANCIAL INSTITUTIONS, FINANCIAL MANAGEMENT, FINANCIAL SECTOR, FINANCIAL SECTOR DEVELOPMENT, FINANCIAL STABILITY, FISCAL BALANCE, FISCAL CONSOLIDATION, FISCAL DEFICIT, FISCAL POLICY, FISHERIES, FIXED ASSETS, FOOD PRICE, FOREIGN CURRENCY, FOREIGN DIRECT INVESTMENT, FOREIGN EXCHANGE, FOREIGN EXCHANGE RESERVES, FOREIGN INVESTMENT, FOREIGN INVESTORS, FOREIGN MARKETS, FOREIGN TRADE, FORESTRY, GDP, GLOBAL ECONOMY, GOVERNMENT EXPENDITURE, GOVERNMENT EXPENDITURES, GOVERNMENT REVENUES, GOVERNMENT SAVINGS, GOVERNMENT SPENDING, GROSS DOMESTIC PRODUCT, GROWTH RATE, GROWTH RATES, HOLDINGS, HUMAN DEVELOPMENT, IMPORTS, INCOME, INCOME TAX, INFLATION, INFLATIONARY PRESSURE, INSTRUMENT, INTEREST RATE, INTEREST RATE SPREAD, INTEREST RATES, INTERNATIONAL BEST PRACTICE, INTERNATIONAL FINANCIAL MARKETS, INTERNATIONAL MARKET, INTERNATIONAL RESERVES, INTERNATIONAL TRADE, INVESTMENT CLIMATE, INVESTMENT PROJECTS, INVESTOR CONFIDENCE, JOINT VENTURES, LABOR MARKET, LAND POLICY, LAND TITLE, LDCS, LENDER, LENDER OF LAST RESORT, LEVEL PLAYING FIELD, LOAN, LOCAL BUSINESS, LOCAL CURRENCY, LOCAL GOVERNMENT, LOCAL GOVERNMENTS, LONG-TERM INVESTORS, LOW-INCOME COUNTRIES, MACROECONOMIC ENVIRONMENT, MACROECONOMIC MANAGEMENT, MACROECONOMIC POLICY, MACROECONOMIC STABILITY, MACROECONOMIC UNCERTAINTY, MACROECONOMICS, MAJOR CURRENCIES, MARKET STABILITY, MICROENTERPRISES, MIDDLE-INCOME COUNTRIES, MONETARY AGGREGATES, MONETARY AUTHORITIES, MONETARY POLICY, MONEY GROWTH, NATIONAL BANK, NATIONAL CURRENCY, NATURAL DISASTERS, NEW MARKETS, OIL, OPEN MARKET, OUTPUT, OUTSTANDING CREDIT, POLICY ENVIRONMENT, POLITICAL STABILITY, POLITICAL TURMOIL, POLITICAL UNCERTAINTY, PORTFOLIO, POST-CRISIS PERIOD, POVERTY REDUCTION, PRICE RISKS, PRICE STABILITY, PRICE VOLATILITY, PRIMARY MARKET, PRODUCERS, PRODUCTION FUNCTION, PRODUCTION INCREASES, PRODUCTIVITY, PUBLIC INVESTMENT, PUBLIC INVESTMENTS, PUBLIC SPENDING, REAL EFFECTIVE EXCHANGE RATE, REAL ESTATE, REAL GDP, REAL GROWTH RATE, REFORM PROGRAM, REGULATORY ENVIRONMENT, REGULATORY FRAMEWORK, REMOTE AREAS, RESERVES, RESOURCE ALLOCATION, RETURN, RETURNS, SECURITIES, SHORT-TERM BORROWING, SHORT-TERM DEBT, SHORT-TERM INTEREST RATE, SOCIAL DEVELOPMENT, SPECULATIVE BUBBLES, SUSTAINABILITY ANALYSIS, TAX, TAX COLLECTION, TAX INCENTIVES, TAX REVENUE, TECHNOLOGICAL CHANGE, TECHNOLOGY TRANSFERS, TRADE BALANCE, TRADE DEFICIT, TRADE TAXES, TRADING, TRADING PARTNERS, TREASURY, TREASURY SECURITIES, URBANIZATION, VALUE ADDED, WAGES, WHOLESALE PRICES, WORKING CAPITAL, WORLD DEVELOPMENT INDICATORS,
Online Access:	http://documents.worldbank.org/curated/en/2014/10/20260732/clear-skies-cambodia-economic-update http://hdl.handle.net/10986/20438
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