The World Bank recently projected Cambodia’s economic growth at 2.2 per cent for 2021, impeded by slow growth in services. The traditional growth drivers—the garment, travel goods, footwear and bicycle industries, as well as agriculture—are underpinning the economic recovery, according to ‘Living with COVID-19’, the bank’s latest economic update for Cambodia.

Despite recovery in manufacturing exports and expansion of agricultural commodity exports, the trade deficit has significantly widened due to rising imports of a few items, especially gold, used for savings, the report said.

“As we all know, Cambodia is now living with COVID-19 and very large numbers of populations have been vaccinated and the government began reopening the country for business, while continuing to enforce protective health measures,” said World Bank country manager for Cambodia Maryam Salim in a press release.

“At the World Bank, we are preparing a Performance and Learning Review that will allow us to further strengthen and align our partnership with Cambodia as the country strives to achieve a resilient recovery from the impact of the COVID-19 pandemic,” Salim added.

However, growth is projected to reach 4.5 per cent in 2022, but any renewed spread of the virus could put the recovery at risk, stated the report.

To jump start the economic recovery, the report recommends key reforms areas, including, clear rules and regulations on living with COVID-19 under the ‘new normal’, regulatory and fiscal measures that support revival in the tourism sector, and prompt introduction of regulations to implement the new investment law.

It also says as the economic recovery takes shape, Cambodia can then start rebuilding its fiscal space and continues to monitor asset quality and improve confidence in the banking system.

Fibre2Fashion News Desk (DS)

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