PHNOM PENH, April 24 (Xinhua) -- As exports moderate in line with a deceleration in global demand, Cambodia's economy is projected to ease to 7 percent in 2019, 0.5 percentage point lower than that of last year, said a World Bank's new report on Wednesday.
World Bank's Senior Country Economist Sodeth Ly said though the growth was predicted slower than last year, it remained robust that would still continue to reduce poverty.
"The longer-term outlook, however, depends on the country's ability to absorb rising foreign direct investment (FDI) inflows, while promoting domestic investment," he said in a press conference here.
"In this regard, cheaper energy and logistics costs, availability of skilled workforce, and improved supply chain linkages will be essential to remain competitive," he added.
Cambodia's economic growth traditionally relies on garment exports, tourism, real estate and construction, and agriculture.
In February, the European Union (EU) started the 18-month process that could lead to the potential suspension of Cambodia's preferential access under the Everything But Arms (EBA) scheme.
"The EU market currently accounts for more than a third of Cambodia's key exports including garments, footwear and bicycles. Therefore, losing EBA preferences, which currently provide Cambodia duty-free and quota-free access to the EU, would likely result in slower export growth," the report said.
