Cambodia retains 4.5% economic growth, exports considered a key driver

Cambodia’s overall goods exports (excluding gold) increased by 22.8 percent in 2021

In its Macro Poverty Outlook (MPO) for East Asia and the Pacific, the World Bank mentioned that a stronger domestic recovery may be on the horizon for Cambodia, saying that easing mobility restrictions will help maintain the Kingdom’s 4.5 percent economic growth.

This number was retained despite the bank downgrading GDP growth prospects for other ASEAN countries. 

Moreover, the report showed that domestic economic activity and agricultural commodity exports are projected to accelerate the recovery. It also mentioned that the traditional growth drivers, especially agriculture, bicycle manufacturing industries, garment, footwear, and travel goods have fully recovered.

Cambodia’s overall goods exports (excluding gold) increased by 22.8 percent in 2021. This can be attributed to a 42.4 percent increase in goods exports to the United States.

According to US Census Bureau estimates, Cambodia’s exports to the US increased by 45.9 percent to USD847.6 million in January of this year. The bilateral trade was USD875.5 million, up 42.4 percent year-on-year.

Thanks to trade preference schemes such as the Generalised System of Preference (GSP) and the Most-Favoured Nation designation, which provides for import discounts, the United States is still the Kingdom’s biggest export destination.

More: Cambodian export sector to flourish in 2022

Cambodia’s rice export to China, on the other hand, went up 3.8 percent in Q1, Xinhua reported. Agriculture Minister Veng Sakhon said the Kingdom exported 88,646 tonnes of milled rice during the given period.

He said China remained Cambodia’s leading rice buyer, followed by the European Union. He also noted that exports to China accounted for 52 percent of the Kingdom’s total rice exports from January to March this year. During this period, it also sold 47,674 tons of rice to the European market.

“A total of 170,539 tons of milled rice were exported to 47 countries and regions during the first three months of this year, up 11 percent year-on-year, earning a gross revenue of 145.8 million U.S. dollars,” said the minister.

The Property Report editors wrote this article. For more information, email: [email protected].