The National Bank of Cambodia has forecast that the Cambodian economy will continue to grow at a rate of 5% in 2022.
The National Bank of Cambodia report on “Macroeconomic and Banking Progress in 2021 and Outlook 2022” indicates that Cambodia’s economic recovery is supported by the export of clothing and non-clothing products, electronic components and bicycles which will strengthen diversification of Cambodia’s exports.
The construction and real estate sectors are expected to grow slowly, supported by rising domestic income and investment flows in Cambodia. The agricultural sector, which accounts for nearly a third of the total workforce, is expected to continue to grow better than in 2021.
The National Bank of Cambodia said that the entry into force of the Cambodia-China and Cambodia-South Korea Free Trade Agreement will continue to increase the potential of the agricultural sector, especially agriculture, processing and l ‘agro industry.
In addition, the Regional Comprehensive Economic Partnership Agreement (RCEP), an agreement between the 10 ASEAN member states and free trade partners (Australia, New Zealand, China, South Korea and Japan), is entered into force on Saturday and will provide opportunities for trade in services and goods, investment and e-commerce.
With the reopening of the economy, national economic activity, including wholesale, retail, telecommunications and transport, and domestic tourism are expected to increase steadily, while international tourism may gradually increase and require time and effort to recover. The sector is developing as before the crisis.
The recovery in tourism will have a positive impact on improving the hotel and restaurant sector and other support services. In particular, the return of foreign workers who have received training and experience has helped to improve productivity and national production, especially in agriculture and crafts.
The gradual improvement in the economy will support government revenues, accumulate fiscal support and above all stimulate public investment, which will make long-term growth profitable.
Headline inflation for 2022 is projected at 2.6%, driven by weaker growth in the food sector, driven by improved supply and slower prices of fuel-related goods and services, and the rate of official exchange rate being stable at around 4,075 riel to the US dollar.
For 2022, the National Bank of Cambodia will continue to put in place support policies to further strengthen the involvement of the banking system in supporting economic recovery and maintaining price and financial stability.
While providing opportunities for digitization as a new source of economic growth, the banking system will seize the opportunity to use new financial technologies to modernize services and improve the financial environment in line with the new standard and to support the framework . Royal Government Digital Economy and Social Policy 2021-2035.