NBC Projects 5 Percent Economic Growth This Year

The economy is likely to grow at around 5 percent this year, primarily supported by agricultural exports, transport, telecommunications and improved investment flows and remittances from overseas workers.

The National Bank of Cambodia made the economic projection in its Financial Stability Review 2021, released recently.

In terms of trade and investment, the country is expected to benefit from the Regional Comprehensive Economic Partnership (RCEP) agreement, bilateral free trade agreements and the introduction of new investment law, read the report.

The source also highlighted threats caused by the Russia-Ukraine war, interest rate hikes in developed countries, China’s economic slowdown due to its strict COVID-19 strategy, the tightening of the global financial conditions, and Omicron variant.

The NBC also mentioned about climate change posing a significant risk to the country’s agricultural production, which is vulnerable to extreme weather events as threats to the country’s economic growth.

Last year, Cambodia’s economic growth was estimated at 3 percent from a contraction growth of 3.1 percent in 2020.

Source: Agency Kampuchea Press