Thailand
Cambodia: Reform at heart of gov’t plans for economic recovery
The Royal Government of Cambodia plans to launch an economic recovery plan after the end of the Covid-19 crisis for 2021-2023 in order to restore pre-pandemic expectations and aspirations.
At the 26th International Conference on The Future of Asia under the theme “Organising a New Era after the Covid Crisis: Asia’s Role in Reshaping the World”, held virtually yesterday, Prime Minister Hun Sen said the Cambodian government is committed to turning the Coronavirus crisis into an opportunity for deeper reform aimed at building a stronger and more resilient economic and social system for future possible crisis.
“The government has been preparing and planning to launch the economic recovery plan from the Covid-19 crisis for 2021-2023 in order to bring economic growth back closer to sustainable growth potential,” he told the virtual conference.
“This will be made with the promises of ensuring peace, security, social stability and public order on the path of a new normalisation, as well as enhancing competitiveness and promoting economic diversification, especially strong industrial bases with high export capacity and stronger links with regional supply chains and the world,” he said.
Under the plan, Cambodia will give priority to the following: rebuilding a strong foundation for the economy to return to the path of growth, focusing on ensuring security, management of the most affected sectors and creating more jobs faster, the prime minister added..
The government will also evolve by continuing to introduce key reform measures in terms of structure, investment and business and the promotion and development of digitalisation in the public and private sectors and to build resilience by strengthening preparedness and responses to future diseases or similar situations that may occur, focusing on the development of a strong health and social protection system.
The Cambodian economy is expected to return to positive growth of 4 percent in 2021 after last year’s contraction, the ASEAN+3 Macroeconomic Research Office (AMRO) said earlier this month.
“Despite disruptions in domestic activity due to the recent lockdown, the Cambodian economy is projected to grow by 4 percent in 2021, led by a robust recovery in manufacturing and supported by continued fiscal stimulus,” AMRO lead specialist Seung Hyun Hong said in the statement.
“The recent spike in community cases underscores the need for the government’s strong response to contain the pandemic and speed up the vaccination rollout to achieve herd immunity,” he said.
In 2020, growth was estimated to contract by 3 percent as containment measures in Cambodia and its major trading partners and tourist markets weakened the country’s key growth drivers, he added.
The statement was issued after Hong, along with AMRO director Toshinori Doi and chief economist Hoe Ee Khor, held a virtual annual consultation with the Cambodian authorities from April 19 to May 4.
The International Monetary Fund was slightly more optimistic for Cambodia’s recovery, putting it at 4.2 percent growth in 2021.
Source: https://www.khmertimeskh.com/50859901/reform-at-heart-of-govt-plans-for-economic-recovery/