Cambodia Economic Update - Post-COVID-19 Economic Recovery

videoType

dynamic-media

videoDmUrl

keyFrameImage

videoDescription

Cambodia Economic Update - Post-COVID-19 Economic Recovery

timestamp

00:08 Cambodia's economy is firmly on a path to recovery

00:12 and has now returned to its pre-pandemic growth trajectory.

00:16 Real GDP growth is estimated to have reached 5.2% in 2022.

00:23 This growth was driven by accelerating recovery in the services sector,

00:28 especially in retail,

00:30 travel,

00:31 and tourism activities,

00:33 driven by pent-up consumer demand and the return of foreign tourists.

00:38 This is offsetting a recent decline in Cambodia's goods exports,

00:43 which have been hit by a slowdown in external demand

00:46 as global growth slows amid higher inflation and interest rates.

00:51 Domestic consumption is also boosted by easing inflation,

00:56 which declined to 2.2% year on year in February 2023

01:02 as energy and food prices stabilized.

01:05 Foreign investment is expected to increase

01:08 with economic activities across the region picking

01:11 up after COVID-19 and oil price shocks.

01:15 The recent reopening of China

01:18 presents a particular opportunity for Cambodia to

01:21 boost its travel and tourism industry.

01:24 Cambodia is expected to maintain its relatively strong growth

01:29 of 5.5% through 2023.

01:33 There are some risks to this projection,

01:36 including further slowdown in external demand,

01:39 more global financial tightening,

01:42 or

01:43 a return to high oil prices.

01:46 Domestically,

01:47 the concentration of credit in the construction and real

01:50 estate sector remains a risk to financial stability.

01:54 In the medium term,

01:55 economic growth is expected to reach 6%,

01:59 bolstered by newly ratified free trade agreements

02:03 and a substantial increase in private.

02:05 And public investment,

02:07 rising investment in physical infrastructure,

02:11 including through public-private partnerships in infrastructure

02:14 such as seaports and roads,

02:16 is encouraged by efforts to accelerate structural reforms.

02:20 Macroeconomic policy should continue to support growth and employment.

02:26 Safeguarding financial stability also remains a priority.

02:31 Travel and tourism will be further boosted by tourism development strategies

02:36 such as those unveiled in Simriap and Mondulgeri.

02:40 Cambodia can also boost its agriculture exports

02:44 by taking advantage of both this new infrastructure

02:47 and its free trade agreements by further improving connectivity,

02:51 reducing trade barriers,

02:53 and streamlining customs procedures.

showAllTimestamps

no

transcript

Cambodia's economy is firmly on a path to recovery and has now returned to its pre-pandemic growth trajectory. Real GDP growth is estimated to have reached 5.2% in 2022. This growth was driven by accelerating recovery in the services sector, especially in retail, travel, and tourism activities, driven by pent-up consumer demand and the return of foreign tourists. This is offsetting a recent decline in Cambodia's goods exports, which have been hit by a slowdown in external demand as global growth slows amid higher inflation and interest rates. Domestic consumption is also boosted by easing inflation, which declined to 2.2% year on year in February 2023 as energy and food prices stabilized. Foreign investment is expected to increase with economic activities across the region picking up after COVID-19 and oil price shocks. The recent reopening of China presents a particular opportunity for Cambodia to boost its travel and tourism industry. Cambodia is expected to maintain its relatively strong growth of 5.5% through 2023. There are some risks to this projection, including further slowdown in external demand, more global financial tightening, or a return to high oil prices. Domestically, the concentration of credit in the construction and real estate sector remains a risk to financial stability. In the medium term, economic growth is expected to reach 6%, bolstered by newly ratified free trade agreements and a substantial increase in private. And public investment, rising investment in physical infrastructure, including through public-private partnerships in infrastructure such as seaports and roads, is encouraged by efforts to accelerate structural reforms. Macroeconomic policy should continue to support growth and employment. Safeguarding financial stability also remains a priority. Travel and tourism will be further boosted by tourism development strategies such as those unveiled in Simriap and Mondulgeri. Cambodia can also boost its agriculture exports by taking advantage of both this new infrastructure and its free trade agreements by further improving connectivity, reducing trade barriers, and streamlining customs procedures.

showAllTranscripts

no

duration

PT3M4S

scene7File

worldbank/Cambodia Economic UpdateMay2023. English

scene7Domain

scene7FileAvs

worldbank/Cambodia Economic UpdateMay2023. English-AVS

title

Cambodia Economic UpdateMay2023 English

description

Cambodia Economic UpdateMay2023 English

showTimestampAndTranscript

yes