Global growth recovery and rapid resumption in economic activity will give impetus to Cambodia’s economic growth this year, according to the National Bank of Cambodia (NBC).
The growth will be supported by the garment, tourism, agriculture, and construction sectors, according to the latest report of NBC.
The Kingdom’s economic growth is expected to be at 5.3 percent this year, higher than the estimated three percent growth in 2021, the bank said.
The global growth is expected to be moderate this year due to the better situation of Covid-19 pandemic and this has benefited the operation of production, trade, tourism, and investment.
However, the Russia-Ukraine war led to an increase in inflation in oil-related goods and services.
In Cambodia, the efficient preventive measures against Covid-19, particularly the vaccination of 94 percent of the total 16 million population pushed the government to reopen the country’s border, removing health measures to the vaccinated foreign tourists, said its governor Chea Chanto.
“The domestically favourable factors with the recovery of the global growth have boosted the country’s manufacturing product exports and supported activities in construction and real estate,” Chanto said.
Cambodia exported $11,317 million worth of products in the first semester of this year, up 31 percent from the same period last year, while imports rose by four percent to $15,400 million.
The report stated that the country’s economic growth would be facing high inflation following the increase in oil prices.
“The strength of the banking system has played an important role in absorbing part of the impact of the Covid-19 crisis on the national economy and contributing to the sustainability of business activities, investment and consumption,” Chanto said.
The IMF announced on July 26, a 3.2 percent revised downward forecast for global growth in 2022 and 2.9 percent in 2023, citing that the global economy is still reeling from the pandemic and Russia’s invasion of Ukraine.
This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.