Cambodia's Economy to Recover by 4.2 Percent in 2021

[Compass Real Estate Platform] PHNOM PENH—The outlook for Cambodia's economy remains uncertain as the Covid-19 crisis has left the country unable to recover fully this year, the IMF says.

On 25 May the International Monetary Fund Cambodia said that the economy will grow this year by 4,2 percent and will continue to expand 6 per cent next year, after growth dropped to 3,5 percent last years, at its first CEO forum on the 2021 virtual conference on 'the economic outlook and COVID reconstruct Cambodia and the ASEAN region.'

Cambodia's financial sector was stable as a result of policy actions. These include a reduction in the liquidity collateralized operations (LPCO) interest rate by the National Bank of Cambodia, a financial tool that enables the Central Bank to lend in local currencies to the financial institutions.

Accordingly, credit restructuring is possible until the end of the year. "However, economic uncertainty remains. Loans for the real property and building sectors, which are partly outside the banking system, and the tourism sector insecurity in particular, "He said Ojima.

"The policy of restricting capital allocation will be implemented for the most cautious reasons as long as there remained an uncertainty problem."

The pro-long community outbreak has meant that Cambodia's potential recovery could be reduced this year from around 4 percent to about 3 percent or less, Chheng Kimlong, Director of Center for Innovation and Democracy Governance at the Asian Vision Institute.

It is due to the severe disruption of economic activities that results in a loss in income as individuals are afraid of the virus contraction and the effects of government restrictions of anti-virus on enterprises.

Cambodia's economic performance was 'pretty well managed' last year, and growth contracts were 3.1 percent in 2020, said David Freedman, country economist of the Asian Development Banking Bank, but growth is expected in 2021 to reach up to 4.5 percent in 2022.

Author ៖ Samnang, Editor-in-Chief ៖ Sunnie, Editor-in-Chief / Producer ៖ Nicole

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