Cambodia is a fast-growing, highly open economy, and attained lower-middle
income status this year. Over the last two decades, Cambodia grew rapidly (average real GDP
growth of around 8 percent) and its integration with the global economy increased sharply,
accompanied by an impressive decline in poverty. Going forward, Cambodia’s strategic location,
China’s changing trade patterns, and ongoing regional integration provide further opportunities.1
Important steps have been taken by the government that will help Cambodia capitalize on these
opportunities, including energy-related investments to help reduce the cost of doing business and
measures to facilitate trade, payments and business registration. Nonetheless, further measures are
needed to support sustained growth, including reforms to improve the business climate and policies
to mitigate rising financial sector vulnerabilities.
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