Asia Regional Integration Center

Cambodia remains one of the fastest growing economies in Southeast Asia. In 2017, the economy featured strong growth at 6.9%, sustained by robust expansion in exports, strong FDI inflows, solid tourist arrivals, and buoyant domestic demand, combined with stable inflation at 2.9%, and a narrowing current account deficit at 10.9% of GDP from 11.2% a year earlier. With continued strength in the global economy, the outlook is positive for the next 2 years. Inflation is expected to remain stable alongside strong growth, while current account deficit will widen before narrowing in 2019. Rising wages require that other costs of doing business be cut to maintain competitiveness with peer economies. Great potential exists in simplifying cumbersome business procedures.