Economic Growth Revised to 3 Percent This Year

Economic Growth Revised to 3 Percent This Year

Cambodia’s economic growth has been revised to reach around 3 percent this year, thanks to the growth of the agricultural and industry sector.

Speaking at the inauguration ceremony of Stung Trang-Krouch Chhmar bridge yesterday, Prime Minister Hun Sen said that the country’s economic activities have recovered after the country has been fully reopened.

“I think that if the remaining two months of this year have a good economic progress, our economic growth by the end of this year will reach around 3 percent,” Mr Hun Sen said.

His growth figure exceeds previous economic growth forecasts.

In the budget law for 2022, the government has forecast the country’s GDP growth around 2.4 percent, recovering from the contraction growth registered in 2020, hit hard by the public health crisis.

Mr Hun Sen said the strong growth is backed by the growth in the agricultural and industrial sector.

“Despite Covid-19, agriculture development has not decreased, but grew and exceeded planned forecast,” he said. “For the industrial sector, a few factories had shut down, but we received new investments constantly.”

The service sector, mainly the tourism sector, which was hit hard in the Covid-19 crisis, is expected to recover as the government allows vaccinated tourists from late November, he said, citing that this sector will contribute largely to the nation’s economic growth.

Figures from the Ministry of Industry, Science, Technology and Innovation, showed that there are 1,848 registered manufacturers and 43,276 registered SMEs, employing 970,487 and 435,905 people respectively.

The industry sector is expected to see positive growth in 2021 and next year due to the resumption of full production chains and new factories opening, reflecting the demand for industrial products, Heng Sokkong told Khmer Times on Monday.

For next year, Mr Hun Sen places the growth at around 5 percent, based on the economic recovery from this year.

This is also backed by the herd immunity that allowed the country to reopen all economic and social activities.

“Cambodia’s re-opening of the nation will not be turned back, but all people should not neglect the ‘3 do’s and 3 don’ts’ practices and other health measures,” he said.

As planned, the National Assembly will hold a plenary session to discuss the budget law for 2021 on Thursday, whereby the previous forecast of 2.4 percent for 2021 is likely to be adjusted to around 3 percent.

Khmer Times