Cambodian economy to grow 4.5% in 2022 and 5.5% in 2023: World Bank

New Covid variant could pose a risk to the ongoing recovery

Before the Covid-period, around two million jobs were generated, and these contributed to a quarter of the GDP. NathanBai/Shutterstock

In the latest data published by the World Bank on 12 January 2022, the economy of Cambodia is predicted to grow 4.5 percent this year and is expected to flourish by 5.5 percent more in the next year, reported Khmer Times. 

However, the projected economic increase in Cambodia, along with its neighbours Thailand, Malaysia and the Philippines, which are highly dependent on tourism, won’t regain its previous numbers just yet. 

The emergence of the Omicron variant can impede the ongoing recovery of tourism and its industry, just as the financial risks that come with climate-related events, vulnerability to natural disasters, and rising debt. 

The World Bank report also noted that the potential rise in infections could curb the projected economic growth. The construction and real estate services sector especially has been corrected after 2021 from four percent to over two percent after tourism and travel. 

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Before the Covid-period, around two million jobs were generated, and these contributed to a quarter of the GDP. 

The Asian Development Bank, on the other hand, predicted Cambodia’s economy to surge by 5.5 percent this year, owing to the recovery of trading partners and their fundamental operations that help increase demand for the local exports. 

Meanwhile, Prime Minister Hun Sen is optimistic that the economic growth in 2022 will exceed five percent on account of the rising export of agricultural products. 

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

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