Cambodia’s economy is projected to grow by 5.3 percent this year, up from 3 percent in 2021, Chea Chanto, governor of the National Bank of Cambodia (NBC), said on Thursday.

“The growth will be supported mainly by a rise in manufacturing exports, an increase in construction and real estate as well as agriculture, and a gradual recovery of tourism,” he said in a closing speech of the central bank’s biannual meeting.

The Southeast Asian country’s economy traditionally relies on garment, footwear and travel goods exports, construction and real estate, agriculture and tourism.

Ministry of Commerce’s undersecretary of state and spokesman Penn Sovicheat said the Regional Comprehensive Economic Partnership (RCEP) and the Cambodia-China FTA (CCFTA), both entering into force on January 1, have been boosting Cambodia’s economic growth.

“Through RCEP and the CCFTA, we’re confident that Cambodia’s export volume to China and other RCEP member countries will be bigger, especially the exports of potential agricultural produce such as rice, cassava, bananas and mangoes, industrial products, and processing goods,” he told Xinhua.

RCEP comprises 15 Asia-Pacific countries including 10 ASEAN member states of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam and their five trading partners, namely China, Japan, South Korea, Australia and New Zealand.

This mega regional trade deal will eliminate as much as 90 percent of the tariffs on goods traded among its signatories over the next 20 years.

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Author: Xinhua

Source: Khmer Times

Publication date: 22 July 2022