Thailand
Cambodia’s 2022 GDP expected to grow 5.6%, says Finance Ministry
Cambodia’s economy in 2022 is projected to grow at around 5.6 percent and gradually reach potential growth in the medium term, supported by global demand and a gradual recovery in investment confidence.
The GDP growth was mentioned in a consultant meeting on assessment of the macroeconomic economic outlook and for the global and regional situation including in Cambodia in 2021-2025 held on Wednesday, chaired by Vongsey Vissoth, Secretary of State of the Ministry of Economy and Finance.
Better growth in global demand and a gradual recovery in the confidence of investment, implementation of the strategic framework and programmes to restore and promote Cambodia’s economic growth in living with Covid-19 in the new normal trajectory 2021-2023 are the factors to restore Cambodia’s economic growth back its potential and strengthen socio-economic resilience to achieve sustainable development, a ministry statement said.
The global pandemic of Covid-19 and economic trends in this period of recovery highlighted the structural strengths and weaknesses of the global economy as well as individual countries, the statement added.
Cambodia needs to focus on its strengths by strengthening the engine of economic growth relying on the manufacturing sector, which has high potential, in line with the trend of diversifying investment in production bases from the countries in the area, it noted.
The ministry said agriculture remains an important strategic sector for growth as well as food security protection, which could be a global challenge in the future while the preparation in the tourism sector in line with the recovery and trends must also be prioritises and resources used appropriately.
In addition, attracting new investment, which may be a catalyst or a new driving force for economic growth in the new environment, is indispensable, the ministry said.
The necessary infrastructure, both hardware and software, to support economic activities in all sectors, especially to eliminate economic barriers in the production chain to create a favourable environment for private sector growth and investment, particularly the SME sector, which is the engine of sustainable economic growth in Cambodia, are advised to be built.
The ministry predicted Cambodia’s GDP growth is expected to recover at a low growth rate of 3.0 percent in 2021 from a contraction of 3.1 percent in 2020. The growth is supported by the strength of external demand which is reflected in the growth of the industrial sector, especially the sub-sector of garments and non-garment manufacturing, as well as the agriculture sector.
Source: https://www.khmertimeskh.com/501014569/cambodias-2022-gdp-expected-to-grow-5-6-says-finance-ministry/