Cambodia-China trade deal to boost Cambodia’s economy by 4%

Tourism and construction, including exports and agriculture will drive the country’s recovery 

According to Economy and Financing Ministry’s standing secretary of state Vongsey Vissoth, Cambodia’s economy is predicted to recover four percent in 2021, following a challenging year of COVID-19 that caused a decline of 3.1 percent, reported The Star. 

The main drivers of Cambodia’s economy are tourism, construction, garment and footwear exports, and agriculture.  

Vissoth said, “growth in all sectors is forecast to bounce back this year after experiencing a recession last year due to the COVID-19.”  

He also mentioned that the recently signed Cambodia-China Free Trade Agreement will be a key factor in boosting economic growth.  

Chheang Vannarith, director general of the General Department of Policy at the Ministry of Economy and Finance, indicated that the service sector, which includes tourism, transport and telecom, trade, and real estate, was projected to increase by 3.4 percent.  

More: Cambodian airports and hotels enforce preventive COVID-19 measures

However, rising protectionism, as well as the ongoing spread of COVID-19 and riskiness in trade preferences could drawback growth. 

“For Cambodia, careful lifting to travel restrictions will help to revive tourism and related services,” said David Freedman, country economist for the Asian Development Bank (ADB) in Cambodia.

“Although the time frames for re-opening remain somewhat uncertain, the recent progress on vaccine approvals internationally is very encouraging.”