Cambodia’s economy is still expected to grow at 7 percent this year before picking up in 2015 due to the easing of political and labor tensions, the Asian Development Bank said on Thursday in an update to a report released earlier in the year.
“This Update retains the [Asian Development Outlook] 2014 forecast that GDP growth will ease to 7.0% this year before picking up in 2015,” the ADB says.
“Political tensions that followed last year’s Cambodian national elections have abated in recent months, and labor unrest in the garment industry eased after the minimum monthly wage for garment workers was raised in February this year,” it adds.
“These developments are expected to lift investor confidence.”
In its annual Cambodia outlook report released in April, the ADB had said political unrest following the opposition CNRP’s boycott of the National Assembly over the disputed national election in July, combined with concurrent nationwide garment-sector strikes had “dented investor confidence” and would ease growth to 7 percent in this year.