Cambodia’s Economy Growing but Must Weather Oil Price Shock

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00:05 Cambodia's living with COVID-19 strategy

00:09 has helped economic recovery take shape.

00:12 By the end of March 2022,

00:16 about 83% of Cambodians had received two doses of a coronavirus vaccine.

00:23 Restrictions have been lifted to restore mobility.

00:27 Cambodia's real GDP growth is projected to reach 4.5% in 2022.

00:34 But it remains uneven.

00:36 The recovery is underpinned by domestic economic activity

00:41 and agricultural exports.

00:44 Total goods exports accelerated to 22.8% in 2021,

00:50 driven by surging exports to the US.

00:53 Traditional growth drivers,

00:55 especially garments and footwear,

00:58 continue to expand.

00:59 Industries manufacturing electrical and vehicle parts are slowly emerging.

01:05 While domestic economic momentum is strong,

01:08 rising global energy and food prices are fueling higher inflation in Cambodia.

01:15 Vulnerable and poor households with limited savings are likely

01:20 to bear the brunt of the oil price shock.

01:23 The fiscal deficit

01:24 is expected to widen to 6.3% of GDP due to government spending on programs

01:31 to support people during the pandemic.

01:34 From 2009 to 2019,

01:37 Cambodia's official poverty rate declined by 1.6% points per year.

01:44 As the country faces the COVID-19 crisis that started in 2020.

01:49 The path of the economy will continue to depend on the course of the virus.

01:54 Over the medium term,

01:55 the economy is expected to grow at around 6% annually.

02:00 The new investment law,

02:02 together with free trade agreements,

02:04 will help boost investment and trade in the coming years.

02:08 Policies that would help sustain the economic recovery include.

02:13 Efforts to contain COVID-19 infection.

02:17 Strengthening consumer and investor confidence,

02:21 promote agricultural exports by trade facilitations and reducing business fees.

02:27 Measures to stabilize retail prices.

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Cambodia's living with COVID-19 strategy has helped economic recovery take shape. By the end of March 2022, about 83% of Cambodians had received two doses of a coronavirus vaccine. Restrictions have been lifted to restore mobility. Cambodia's real GDP growth is projected to reach 4.5% in 2022. But it remains uneven. The recovery is underpinned by domestic economic activity and agricultural exports. Total goods exports accelerated to 22.8% in 2021, driven by surging exports to the US. Traditional growth drivers, especially garments and footwear, continue to expand. Industries manufacturing electrical and vehicle parts are slowly emerging. While domestic economic momentum is strong, rising global energy and food prices are fueling higher inflation in Cambodia. Vulnerable and poor households with limited savings are likely to bear the brunt of the oil price shock. The fiscal deficit is expected to widen to 6.3% of GDP due to government spending on programs to support people during the pandemic. From 2009 to 2019, Cambodia's official poverty rate declined by 1.6% points per year. As the country faces the COVID-19 crisis that started in 2020. The path of the economy will continue to depend on the course of the virus. Over the medium term, the economy is expected to grow at around 6% annually. The new investment law, together with free trade agreements, will help boost investment and trade in the coming years. Policies that would help sustain the economic recovery include. Efforts to contain COVID-19 infection. Strengthening consumer and investor confidence, promote agricultural exports by trade facilitations and reducing business fees. Measures to stabilize retail prices.

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worldbank/Economic Upate-English-27-06-2022

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Economic Upate English 27 06 2022

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Economic Upate English 27 06 2022

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