The move was driven by global and domestic challenges, shifting trade policies, a prolonged downturn in the real estate sector, and tightening credit cycles which have presented significant obstacles for Cambodia’s economy.
Cambodian Prime Minister Hun Sen has expressed his concern over the Cambodian economy, which may be affected by rising global oil prices and increased inflation caused by the COVID-19 pandemic and the Russia-Ukraine conflict.
Cambodia's economy is projected to contract 2 percent in 2020 but recover to a four percent growth next year, the World Bank forecast in its latest economic update for Cambodia entitled Restrained Recovery.
Cambodia's economy remains robust in 2019 despite concerns over the possible loss of Everything but Arms (EBA) trade scheme with the European Union (EU), Cambodian officials and analysts said.
Cambodia's economy enjoyed robust growth in 2018, driven by garment exports, construction and tourism, according to a statement released by the National Bank of Cambodia (NBC) on January 3.
Cambodia's economy is likely to expand 6.9 percent this year, a slight increase as compared with the growth rate of 6.8 percent in 2017, mainly thanks to a recovery in textiles and garment exports, tourism and agricultural sectors, the World Bank (WB) said.
