Trade monitoring

Since 2011, Cambodia’s real GDP growth has been strong, averaging over 7% annually. Construction, manufacturing (mainly garments exports) and, to a lesser extent, tourism-related services, have been the drivers of growth. Economic growth has been inclusive and widespread, resulting in declining inequality and poverty levels. Prudent macroeconomic management has resulted in moderate inflation, a stable exchange rate, relatively low unemployment, and manageable external debt levels. However, the informal nature of a large portion of the Cambodian economy, which is largely based on services followed by agriculture, implies that GDP is significantly underestimated, and that it undermines the effectiveness of government policy.

A perennial policy question is how the multilateral trading system is affected by the rise of preferential trading agreements (PTAs). Is multilateral trade cooperation compromised by burgeoning regionalism? Should we see these different approaches as complementing or competing with each other? Are there synergies, or inevitable conflicts? Building on the analysis of the report so far, this final section examines these questions.

The World Trade Report is a new annual publication produced by the WTO Secretariat. Each year, the WTR will explore trends in world trade and highlight important issues in the world trading system. In addition to monitoring and interpreting trade developments, the Report seeks to deepen public understanding of pressing policy issues. The WTR does not pretend to provide comprehensive answers to complex and many-sided questions subject to continuing debate among governments and their constituencies. Rather, by explaining the origin of issues and offering an analytical framework within which to address them, the WTR aims to contribute to more informed discussion and a better appreciation of the options available to address policy challenges.