Groundbreaking ceremony of the upgrade of National Road 48

Cambodia’s economic growth in 2021 is projected to reach around 3 percent thanks to strong export of agriculture, industrial products,  especially the reopening of the country after the Covid pandemic.

The projection was made by Prime Minister Hun Sen while delivering a public speech at the ground breaking ceremony of the upgrade of National Road 48  yesterday.

The government’s income has shown a positive signal, particularly since the government announced the reopening of the country, he said.

“The country’s economic growth will reach 3 percent for 2021. The final projection of the economic growth will be made in the next three months, but at least it will reach around 3 percent,” Mr Hun Sen said.

The Premier’s GDP projection is higher than the growth rate mentioned by the Ministry of Economy and Finance in the budget bill 2022, which has been endorsed recently.

The ministry projected 2.4 percent of GDP growth in 2021 and 4 percent in 2022.

Phan Phalla, Secretary of State at the Ministry of Economy and Finance, said in December that the activities in the economy sector in Cambodia have started to recover since the government reopened the country.

“This has led to the reopening of economic and social activities and the projection of GDP growth of 2.4 percent may be not right,” he said, adding the adjusting of GDP growth will be made at the end this year according to the better improved situation of the economy.

According to Mr Hun Sen, the tax income for the whole year 2021 amounted to $2,294 million, 24.2 percent exceeding the target and the customs income was $2,243 million, accounting for 97.3 percent of target.

“Although decreasing, incomes from tax and customs were cumulatively at $4,500 million. The decrease is not making the government collapse,” he said.

He also urged compatriots to join in combatting the Covid-19 epidemic infection in aiming to boost economic growth.

The National Bank of Cambodia has forecast that the Cambodian economy will continue to grow at a rate of 5 percent in 2022.

The National Bank of Cambodia’s report on ‘Macroeconomic and Banking Progress in 2021 and Outlook 2022’ states that Cambodia’s economic recovery is supported by the export of garments and non-garment products, electronic components and bicycles that will enhance Cambodia’s export diversification.

As of nine months 2021, Cambodia’s total export (excluding gold) achieved a total amount of $12,688 million, a 23 percent increase compared to the same period last year, driven by the increase of garments, bicycles, and other export goods including furniture, rubber, solar, electronics and electronic parts, bananas, wires and cables, sugar, other agricultural products, cassava and mangoes.

Source: Khmer Times