Cambodia’s economy is forecast to grow 4 per cent this year and 5.5 per cent in 2022, as the economic recovery in major trading partners boosts demand for Cambodia’s exports, according to an Asian Development Bank (ADB) report released today. Last year, Cambodian economy contracted 3.1 per cent due to the impact of the global COVID-19 pandemic.
“The (Cambodian) government has responded quickly to the recent spike in cases, and we expect the economy to return to growth in 2021. This will help increase household incomes, but not all sectors and regions will benefit equally, so it will be essential to closely monitor household welfare and the need for additional support,” said ADB country director for Cambodia Sunniya Durrani-Jamal.
According to the Asian Development Outlook (ADO) 2021, industrial production is expected to rise 7.1 per cent in 2021 and 7.0 per cent in 2022 on the back of a rebound in the garments, footwear, and travel goods sector, as well as growth in other light manufacturing such as electronics and bicycles.