Cambodia expects solid GDP growth of five per cent in 2022
Cambodia expects a swift recovery from the Covid-19 pandemic in the course of 2022, supported by improving exports of garments and non-garment products, electronic components and bicycles that would enhance Cambodia’s export diversification, the country’s central bank said in its latest outlook for the New Year cited by the Khmer Times.
Overall, gross domestic product (GDP) growth of around five per cent is expected for 2022, the report said.
The construction and real estate sectors are also expected to grow, albeit slowly, supported by rising domestic revenue and investment inflows into Cambodia, the National Bank of Cambodia noted in the report. The agricultural sector, which accounts for nearly a third of the total workforce in the country, is seen to recover from its slowdown in 2021 on higher demand.
Furthermore, the entry into force of the Cambodia-China and Cambodia-South Korea Free Trade Agreement would “continue to increase the potential of the agricultural sector,” especially for agricultural product processing and the agro-industry.
RCEP trade pact comes into force
In addition, the Regional Comprehensive Economic Partnership Agreement (RCEP), an agreement between the ten member states of the Association of Southeast Asian Nations and free trade partners Australia, New Zealand, China, South Korea and Japan has come into force on January 1 and would provide opportunities for trade in services and goods, investment and e-commerce, according to the central bank.
With the gradual reopening of the economy, domestic economic activity, including wholesale, retail, telecommunications and transportation, as well domestic tourism is expected to increase steadily, while international tourism also may increase, but only gradually as it requires time and effort to recover, pending the developments surrounding the new Covid-19 virus variant Omicron.
Relatively low inflation throughout 2022
Naturally, the recovery of tourism would have a positive impact on the hotel and restaurant sector and related services. In addition, the return of Cambodian overseas workers who have received training and experience abroad will be contributing to improving productivity and domestic production, the central bank’s report noted.
Cambodia’s overall inflation for 2022 is projected at 2.6 per cent, driven by lower growth in the food sector, improved supply and slowing prices of fuel-dependent goods and services. The official exchange rate being is set to be stable at around 4,075 riel per US dollar over the year, National Bank of Cambodia said.
Cambodia expects a swift recovery from the Covid-19 pandemic in the course of 2022, supported by improving exports of garments and non-garment products, electronic components and bicycles that would enhance Cambodia’s export diversification, the country’s central bank said in its latest outlook for the New Year cited by the Khmer Times. Overall, gross domestic product (GDP) growth of around five per cent is expected for 2022, the report said. The construction and real estate sectors are also expected to grow, albeit slowly, supported by rising domestic revenue and investment inflows into Cambodia, the National Bank of Cambodia noted in the...
Cambodia expects a swift recovery from the Covid-19 pandemic in the course of 2022, supported by improving exports of garments and non-garment products, electronic components and bicycles that would enhance Cambodia’s export diversification, the country’s central bank said in its latest outlook for the New Year cited by the Khmer Times.
Overall, gross domestic product (GDP) growth of around five per cent is expected for 2022, the report said.
The construction and real estate sectors are also expected to grow, albeit slowly, supported by rising domestic revenue and investment inflows into Cambodia, the National Bank of Cambodia noted in the report. The agricultural sector, which accounts for nearly a third of the total workforce in the country, is seen to recover from its slowdown in 2021 on higher demand.
Furthermore, the entry into force of the Cambodia-China and Cambodia-South Korea Free Trade Agreement would “continue to increase the potential of the agricultural sector,” especially for agricultural product processing and the agro-industry.
RCEP trade pact comes into force
In addition, the Regional Comprehensive Economic Partnership Agreement (RCEP), an agreement between the ten member states of the Association of Southeast Asian Nations and free trade partners Australia, New Zealand, China, South Korea and Japan has come into force on January 1 and would provide opportunities for trade in services and goods, investment and e-commerce, according to the central bank.
With the gradual reopening of the economy, domestic economic activity, including wholesale, retail, telecommunications and transportation, as well domestic tourism is expected to increase steadily, while international tourism also may increase, but only gradually as it requires time and effort to recover, pending the developments surrounding the new Covid-19 virus variant Omicron.
Relatively low inflation throughout 2022
Naturally, the recovery of tourism would have a positive impact on the hotel and restaurant sector and related services. In addition, the return of Cambodian overseas workers who have received training and experience abroad will be contributing to improving productivity and domestic production, the central bank’s report noted.
Cambodia’s overall inflation for 2022 is projected at 2.6 per cent, driven by lower growth in the food sector, improved supply and slowing prices of fuel-dependent goods and services. The official exchange rate being is set to be stable at around 4,075 riel per US dollar over the year, National Bank of Cambodia said.
