The Asian Development Bank’s (ADB) recent US$60 million loan to Cambodia is set to boost the skills and competitiveness of its growing labour force as the country’s economy undergoes a key transition.
Driven by garment exports and tourism, Cambodia’s economy grew by an average of 7.7 percent between 1995 and 2018 according to the World Bank, making it one of the fastest-growing economies in the world. Cambodia has undergone rapid progress over the past two decades and it reached lower middle-income status in 2015 – with authorities now working on attaining upper middle-income status by 2030.
Cambodia’s high growth was built on the back of its low-cost labour, but this phase of its development is drawing to a close and the country is making the transition from a low-skilled, labour-intensive growth model to a skills-driven one.
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