According to the most recent International Monetary Fund (IMF) report released on Tuesday (October 10), Cambodia is anticipated to realize economic growth of 5.6% this 12 months and 6.1% next 12 months, compared with a growth rate of 5. 2% last 12 months.
This report is mentioned within the IMF’s latest World Economic Outlook and shows that Cambodia has the potential to grow to be the fastest growing economy in ASEAN for the second 12 months in a row.
In second place is the Philippines, which is anticipated to grow by 5.3% this 12 months and 5.9% next 12 months.
Meanwhile, Indonesia’s economic growth this 12 months and next is anticipated to be around 5.0%, while Vietnam is anticipated to grow by 4.7% this 12 months and 5.8% next 12 months.
The economies of Laos and Malaysia are also expected to grow by 4.0% this 12 months, with growth remaining stable in Laos and rising to 4.3% in Malaysia next 12 months.
Thailand is anticipated to grow 2.7% this 12 months and three.2% next 12 months. Myanmar’s economy is anticipated to grow by 2.6% this 12 months and next.
The other two countries with the most important economies in ASEAN, Singapore and Brunei, are expected to perform less favorably. Singapore’s economy is anticipated to grow by just 1.0% this 12 months and a couple of.1% next 12 months. Meanwhile, Brunei’s economy is anticipated to contract by 0.8% before rebounding to grow by 3.5% next 12 months.
In the report, the IMF said that global economic growth is currently slow and uneven, and global imbalances are widening. However, the IMF also emphasized that many developing countries have shown significant resilience and a few have even surprised on the upside.
Economic growth in Cambodia: what’s driving it?
According to China Daily, researcher Thong Mengdavid from the Asian Vision Institute in Phnom Penh said several aspects are driving Cambodia’s economic growth. One of them is the revival of the export-oriented manufacturing sector, specifically the clothing industry, which has contributed significantly to economic growth after the pandemic.
The full implementation of the Regional Comprehensive Economic Partnership (RCEP) and the Cambodia-China Free Trade Agreement also had a positive impact. They strengthen Cambodia’s competitiveness, stimulate regional trade and diversify investment within the agricultural sector.
Similarly, Cambodia’s export production reached $16.94 billion in the primary nine months of this 12 months, despite a decline of 0.8% in comparison with last 12 months. Exports to China increased by 18.3% from January to September.
Subsequently, under RCEP, Cambodia managed to extend its exports to other member countries to $5.26 billion in the primary eight months of this 12 months, a rise of twenty-two% in comparison with last 12 months. This information relies on a report from the Ministry of Commerce.
Other aspects contributing to economic growth include increased arrivals of international tourists and efficient government revenue administration and effective financial management.
Source: Khmer times | China each day
