World Bank Warns of Economic Risks Amid Strong Growth

Possible E.U. trade sanctions, rising indebtedness and slowing foreign investment — which “peaked” last year — pose substantial risks to the Cambodian economy despite continuing strong growth, the World Bank said in its latest country update.

In its “Cambodia Economic Update,” released on Wednesday, the World Bank said GDP growth was expected to ease from 7.5 percent last year to 7 percent this year and 6.8 percent next year. Despite the relative slowdown, this would keep Cambodia as the fastest-growing economy in East Asia and the Pacific.

The report also noted huge growth in imports of petroleum, steel and construction materials, up by 91, 64 and 87 percent, respectively, for the first half of the year compared to the same period a year earlier. Consumption of electronics also increased 88 percent, the report said.

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