NBC: Cambodia’s Economic Growth Expected at 5.3% This Year

Cambodia’s economy is expected to continue to grow at 5.3 percent, mainly supported by growth in manufacturing exports, construction and real estate, agriculture, and gradual recovery of tourism sector, according to the National Bank of Cambodia (NBC). 

The projected economic growth this year is higher than in 2021, at 3 percent, said H.E. Chea Chanto, Governor of NBC in the closing ceremony of a meeting to review the NBC’s work achievements in the first semester of 2022and set new objectives for the second semester held here this week.  

With the optimistic growth, Cambodia is also expected to be hit by the uncertain conditions of the economy slowdown in the European Union and in China, he added. 

“The Cambodian economy may face some uncertainties, such as the risk of a slowdown in the EU economic growth, which could affect Cambodian exports and a slowdown in China’s economic growth, which could slow growth in investment and the recovery of tourism and real estate,” the NBC governor said. 

Additionally, although the U.S, Federal Reserve raises the benchmark interest rate, it does not directly affect that in Cambodia, however it could put pressure on the exchange rate due to the appreciation of the U.S. dollar in international markets, he underlined. 

With oil prices predicted to decrease, inflation – at its highest in a decade fueled by rising global oil and food prices – looks to follow suit in the second half of this year, H.E Chea Chanto said. 

Source: Agency Kampuchea Press