Cambodia’s economy is expected to grow by 4.5 per cent in 2022, according to the World Bank’s June 2022 economic update for the country that shows while domestic economic activity and goods exports continue to recover from the slowdown caused by COVID-19 and the oil price shock, growth remains uneven, with the war in Ukraine driving inflation.
During the first quarter (Q1) of this year, goods exports rose to $4.8 billion, up by 26 per cent from last year. Traditional growth drivers, especially garments, travel goods, and footwear continue to expand but newer manufacturing industries, such as for electrical and vehicle parts, are also emerging. The World Bank report noted that the exports to the United States have been surging.
Although domestic economic momentum is strong, recovery is held back by deteriorating global demand, it cautioned. Rising global energy and food prices are fueling higher inflation, it pointed out.