According to the World Bank’s latest economic update on Cambodia, the country’s economy this year will contract by -1 and -2.9 percent. This is a worrying sign given the kingdom’s reliance on tourism, manufacturing exports, agriculture and construction. In realising this fact, Australia has stepped up its efforts to help reduce the impact on Cambodian citizens, while also responding to its own economic issues.
As strategic partners, this gesture is a sign of close cooperation and close ties between Cambodia and Australia. It also shows that Australia cares for the well-being of Cambodians and is ready to build institutions that are capable of weathering economic crises.
Poverty could increase among households involved in industries that are key economic drivers of growth in Cambodia this year. According to the World Bank, the fiscal deficit projection could reach its highest level in 22 years and could put almost 1.76 million Cambodian jobs at risk. This could cause a severe slowdown in the construction and garment manufacturing sectors due to supply chain stagnation from China and Vietnam.