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Cambodia: Booming US recovery boosts bilateral trade and exports
Strong recovery in the US has buoyed bilateral trade with the Kingdom by 16.9 percent – $289.9 million – in the first quarter of 2021 to $1.9683 billion, according to the US Census Bureau.
With 75 percent of the US population anticipated to be fully vaccinated in four months and 38.6 percent of the population already completely vaccinated, pockets of the country have already reopened in entirety. New York City – the economic engine of the nation – is planning its “major reopening” on May 19 when restaurants, museums, cinemas, theatres and other entertainment venues will come back to life, New York Governor Andrew Cuomo said at a news conference.
Consumer spending in the US has risen 2.6 percent in the first three months of the year with a 5.4 percent increase in purchase goods, according to Anthony Galliano, president of the American Chamber of Commerce in Cambodia.
“The superstar here is the strong rebound in US economic growth, primarily as a result of an incredible turnaround in pandemic management and containment, remarkable traction on nationwide vaccination, the easing of Coronavirus-related business restrictions and a $1.9 trillion government stimulus package in March,” Galliano, who is also group chief executive officer of corporate finance firm Cambodian Investment Management, told Khmer Times.
Total exports last quarter were valued at $1.8629 billion and imports totalled $106.3 million – resulting in a trade surplus in favour of the Kingdom of $1.7566 billion, according to official figures.
Chief exports were garments, footwear and travel products. Imports from the US were dominated by vehicles, animal feed and machinery.
However, the uptick marks a recovery in global trade since the onset of the pandemic last year. Consumer spending in the US plunged by a record 13.6 percent in April 2020 at the peak of the economic downturn.
Exports to the US fell by $478.4 million during the first quarter of 2020 over 2019. That year, Cambodia was the US’ 58th largest trading partner with bilateral trade totalling $5.4 billion – resulting in a $4.8 billion trade surplus for the Kingdom.
Galliano stressed that Cambodia would benefit alongside the US and emphasised the US will expand its status to be the largest single importer of Cambodian goods.
“It’s a perfect storm between the two countries, a massive resurgence in economic growth in the US driven by strong consumer spending and a resilient Cambodian economy, backed by superb pandemic management and containment that has kept the engines of the [Cambodian] economy substantially running,” he said.
While a large portion of Cambodia’s manufacturing base, especially in garments, has been forced to temporarily suspend operations, Galliano said there was no question that the current wave will be contained in time for the local economy to grow alongside the US.
“The Royal Government has superbly managed the pandemic. While the daily numbers have spiked and appear to be startling, it is only because we have increased from a fantastically low base,” he added.
Source: https://www.khmertimeskh.com/50852336/booming-us-recovery-boosts-bilateral-trade-and-exports/