The Cambodian recovery is beginning to take shape with the World Bank projecting that the economy will “expand moderately in the short-term”.
The Kingdom’s economy contracted 3.1 percent last year and is forecast to grow by 4 percent this year under baseline conditions, according to the World Bank.
Economic growth will be buoyed by increased domestic investment, vaccination efforts and fiscal stimulus, the global body said in its biannual country report.
“Cambodia’s economy is tourism-dependent. Regardless of a recovery in domestic tourism after the easing of lockdowns, global tourism is expected to remain below pre-pandemic levels until 2023,” the World Bank said.
Noting that the 2021 budget has boosted domestically financed public investment to make up for losses in foreign direct investments, the World Bank stated increased effort is needed to improve the business climate ahead of the full ratification of the Cambodia-China Free Trade Agreement and the Regional Comprehensive Economic Partnership.