NBC Forecasts Continuing Positive Trend of Cambodia’s Economic Growth

AKP Phnom Penh, July 16, 2018 —

Senior leaders of the National Bank of Cambodia (NBC) have once again shared their positive perspective over the country’s economic growth this year.

This positive view was made known here last Saturday at the NBC’s first semester work review meeting.

H.E. Ms. Chea Serei, Assistant Governor and Director General of Central Banking of NBC, said the country’s macroeconomic situation will remain strong as the inflation rate is low, the exchange rate is stable, and the foreign reserves are high.

The banking sector, especially the banking system, continued to progress strongly while risks have been managed effectively, she added.

H.E. Chea Chanto, Governor of NBC, said in the first half of this year, Cambodia’s economy continued to grow steadily, especially in the fields of export and tourism, with robust growth in construction and continued growth of the agricultural sector, which would make economic growth in 2018 a viable high.

“As a banking regulator, NBC has contributed to maintaining stability and developing more banking and financial sectors. In fact, the banking sector has been playing a central role in supporting the growth of the last 20 years. This contribution is made through providing financial services to companies, enterprises and people to create and expand economic activities that contribute to promoting economic growth, creating jobs, promoting equity and efficiency in line with the Royal Government’s Rectangular Strategy. Better banking and financial institutions and the risks to financial stability are low and manageable,” he said.

According to the National Institute of Statistics, and the calculation of the NBC, this year, Cambodia would achieve an economic growth of 7 percent with the contribution from 10.2 percent of industrial sector, 6.5 percent of services, and 2 percent of agriculture sector.

In the first six months of this year, the average inflation rate was at 2.6 percent, down from 3.5 percent during the same period in 2017 as food prices have dropped from 4.5 to 2.6 percent.

By Khan Sophirom