Cambodia’s economy to grow 5.1% in 2022 and 6.2 percent in 2023

Cambodian economy will grow at 5.1 percent this year and 6.2 percent in 2023, according to the Ministry of Economy and Finance. The forecast followed the preliminary assessment of the macroeconomic situation of Cambodia by the International Monetary Fund (IMF) mission here. Regarding the assessment of the economic and financial situation in the country, Alasdair Scott, the IMF’s mission chief for Cambodia said that the growth will be due to the socio-economic recovery, despite some risks such as high inflation, ongoing Russian-Ukrainian war, a slowdown of the Chinese economy, and faster-than-expected tightening monetary policy in developed countries. At the same time, the Cambodian economy in 2023 is expected to grow higher than the previous forecast at 6.2 percent, mainly due to the growth of the tourism sector. The IMF also urged the government of Cambodia to take timely steps to address the social and economic challenges and prevent the spread of Covid-19. In particular, Cambodia’s successful vaccination campaign should continue. The working group of the mission also expressed a strong will to support Cambodia in hosting the upcoming Asean Summit 2022 and provide further support to the government of Cambodia in terms of technical assistance and policy guidelines. Aun Pornmoniroth, Deputy Prime Minister, Minister of Economy and Finance highlighted the importance of IMF’s current mission in the context of heightened uncertainty and geopolitical tensions, such as the Russia-Ukraine war, which has directly and indirectly affected countries around the world. The minister also asked the IMF to look into three key issues in the coming months, including rising inflation due to the Russian-Ukrainian war and its impact on the Cambodian economy, especially in the agricultural sector. Moreover, there are problems with the rapid growth of private credit and economic risks faced by the construction and real estate sectors. The mission was also urged to review the revenue collection strategies of the government and sources of funds. This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources. Khmer Daily