ECONOMY Cambodia's new COVID crisis clips growth prospects - article from Nikkei Asia Review

Whether you're a working stiff or a business owner yourself, this is the place to discuss all aspects of financing your drinking habit ;-)

NO BUSINESS SALES HERE PLEASE, WE HAVE A SECTION FOR THAT IN THE CLASSIFIEDS.
User avatar
CEOCambodiaNews
Expatriate
Posts: 62322
Joined: Sun Oct 12, 2014 5:13 am
Reputation: 4033
Location: CEO Newsroom in Phnom Penh, Cambodia
Contact:
Cambodia

Re: ECONOMY Cambodia's new COVID crisis clips growth prospects - article from Nikkei Asia Review

Post by CEOCambodiaNews »

IMF Sees Inflation Having Similar Impacts on Poverty in Cambodia and Vietnam
AKP Phnom Penh, October 30, 2022 --
The International Monetary Fund (IMF) expects higher food and energy prices to have similar impacts on relative poverty in Cambodia and Vietnam.

In its outlook for Asia and the Pacific released in Singapore last week, the IMF also said that the consequences for vulnerable Cambodian and Vietnamese households were likely to be about five times greater than those in China.

The IMF estimates relative poverty at about 25 percent in Cambodia, 19 percent in Vietnam and 21 percent in China — based on the proportion of households living below half of median income per capita.

Based on household surveys and a July update to its world economic outlook, the IMF said inflation projections suggested that relative poverty might rise by one percentage point in Cambodia and Vietnam but only two-tenths of a point in China.

“Differences across countries reflect higher inflation forecasts in Cambodia and Vietnam, and the different shapes of income distributions,” it said.

If governments decide to support vulnerable households for income eroded by inflation, the IMF estimates the costs at 0.15 percent of GDP in Cambodia, 0.06 percent in Vietnam, and 0.03 percent in China.

DOWNSIDE RISK SCENARIOS
The outlook meanwhile found that downside risks from worse-than-expected global economic conditions could shave about a percentage point off growth in the Asia-Pacific region next year, reducing GDP expansion to around 3.5 percent.

Among seven ASEAN economies examined, the IMF estimated growth reductions of about 2 percentage points for Vietnam, Singapore and Cambodia, about 1.5 points for Malaysia and Thailand, and about 1 point for the Philippines and Indonesia.

The estimates are based on three downside risks — a deeper-than-expected slowdown in China, a broader global slowdown with economic stagnation in the United States and the euro area, and tighter financial conditions.

“In the short term, an intensification of the war in Ukraine could drive up commodity prices and make the slowdown in demand from the United States and European Union deeper and more persistent than expected,” the outlook said.

"Likewise, the materialisation of risks from China’s property sector could deepen its slowdown and stretch it into 2023.”

The IMF warned that tighter financial conditions could reflect “unexpected market reactions” after a decade of loose monetary policy in which central banks in advanced economies kept interest rates at historic lows in the wake of the global financial crisis that erupted in 2008.

By Sao Da
AKP
Join the Cambodia Expats Online Telegram Channel: https://t.me/CambodiaExpatsOnline

Cambodia Expats Online: Bringing you breaking news from Cambodia before you read it anywhere else!

Have a story or an anonymous news tip for CEO? Need advertising? CONTACT US

Cambodia Expats Online is the most popular community in the country. JOIN TODAY

Follow CEO on social media:

Facebook
Twitter
YouTube
Instagram
User avatar
CEOCambodiaNews
Expatriate
Posts: 62322
Joined: Sun Oct 12, 2014 5:13 am
Reputation: 4033
Location: CEO Newsroom in Phnom Penh, Cambodia
Contact:
Cambodia

Re: ECONOMY Cambodia's new COVID crisis clips growth prospects - article from Nikkei Asia Review

Post by CEOCambodiaNews »

Pandemic Checks Cambodia’s Progress on Poverty
AKP Phnom Penh, November 28, 2022 --

Cambodia’s national poverty rate fell by almost half between 2009 and 2019, but the COVID-19 pandemic has more recently reversed poverty reduction progress, a World Bank report released today shows.

Cambodia’s poverty rate dropped from 33.8 percent to 17.8 percent over the ten-year period to 2019/2020, with almost 2 million Cambodians escaping poverty, the World Bank’s Poverty Assessment Report for Cambodia, Toward A More Inclusive and Resilient Cambodia, says. Since 2020, the rate has increased by 2.8 percentage points, indicating that around 460,000 people have fallen below poverty income thresholds.

Between 2009 and 2019, Cambodia experienced a decade of growth and widespread income gains. Rapid economic expansion, combined with structural change, led to rising wages and higher standards of living.

Rising non-farm earnings, for example in the tourism, garment and construction sectors, contributed most to poverty reduction, the report finds. Trade and investment-led growth supported structural transformation toward more productive sectors, creating better-paying manufacturing and services jobs. Workers were able to move out of low-paying agriculture into better-paying sectors of the economy and boost their earnings.

At the same time, living conditions and access to basic services such as electricity, water supply, sanitation, health, and education improved for broad segments of the population. This improvement has narrowed standard-of-living gaps between rural and urban households.

“Efforts to accelerate Cambodia’s structural transformation have helped reduce poverty,” said Maryam Salim, World Bank Country Manager for Cambodia. “However, despite this impressive success, many households remained vulnerable, with few savings or safety nets. This meant COVID-19 dealt a setback the country’s progress in combatting poverty as employment and wages diminished.”

To support a more inclusive and resilient recovery from the pandemic and the economic shocks that came with it, Cambodia could consider a range of policy actions, the report suggests. These include targeted cash transfers, steps to strengthening social protection, investments in health and education.

By Heng Panha
AKP
Join the Cambodia Expats Online Telegram Channel: https://t.me/CambodiaExpatsOnline

Cambodia Expats Online: Bringing you breaking news from Cambodia before you read it anywhere else!

Have a story or an anonymous news tip for CEO? Need advertising? CONTACT US

Cambodia Expats Online is the most popular community in the country. JOIN TODAY

Follow CEO on social media:

Facebook
Twitter
YouTube
Instagram
User avatar
CEOCambodiaNews
Expatriate
Posts: 62322
Joined: Sun Oct 12, 2014 5:13 am
Reputation: 4033
Location: CEO Newsroom in Phnom Penh, Cambodia
Contact:
Cambodia

Re: ECONOMY Cambodia's new COVID crisis clips growth prospects - article from Nikkei Asia Review

Post by CEOCambodiaNews »

ADB lends Cambodia 50 mln USD to help boost post-pandemic economic recovery
Source: Xinhua
2022-12-06
PHNOM PENH, Dec. 6 -- The Manila-based Asian Development Bank (ADB) has approved a 50-million U.S. dollars loan to support the Cambodian government to diversify the country's economy and boost its global competitiveness, the lender said in a press statement on Tuesday.

The program will support Cambodia's post-COVID-19 economic recovery by supporting government reforms to enhance the investment and business environment, foster the growth of micro, small, and medium-sized enterprises (MSMEs), and improve trade policy and trade facilitation, the statement said.

"The COVID-19 pandemic severely impacted key sectors of the Cambodian economy like garment, footwear, and textile manufacturing, as well as tourism and construction," ADB senior economist Sion L. Morton said.

The reforms under the program will help Cambodia's post-pandemic recovery prospects by paving the way for businesses to grow and migrate to higher value-added segments and adapt to the changing trade landscape, he said.

The program will help improve the overall business climate for both domestic and foreign firms, the statement said, adding that it will support the development and diversification of MSMEs, improving their access to finance, and creating new markets for them.

"The program will also help Cambodia improve the implementation of regional trade agreements and strengthen coordination on trade facilitation to provide more opportunities for Cambodian businesses to export their goods," the statement said. ■
Join the Cambodia Expats Online Telegram Channel: https://t.me/CambodiaExpatsOnline

Cambodia Expats Online: Bringing you breaking news from Cambodia before you read it anywhere else!

Have a story or an anonymous news tip for CEO? Need advertising? CONTACT US

Cambodia Expats Online is the most popular community in the country. JOIN TODAY

Follow CEO on social media:

Facebook
Twitter
YouTube
Instagram
User avatar
CEOCambodiaNews
Expatriate
Posts: 62322
Joined: Sun Oct 12, 2014 5:13 am
Reputation: 4033
Location: CEO Newsroom in Phnom Penh, Cambodia
Contact:
Cambodia

Re: ECONOMY Cambodia's new COVID crisis clips growth prospects - article from Nikkei Asia Review

Post by CEOCambodiaNews »

Cambodia’s Economy is Recovering but Could Face Headwinds, World Bank Report Says
AKP Phnom Penh, December 07, 2022 --
Cambodia’s economy is recovering well after COVID-19, but global headwinds could pose risks to a positive outlook in months to come, the World Bank said in a report released today.

The World Bank forecasts economic growth of 4.8 percent in 2022 as the post-pandemic economic recovery expands thanks to a rebound in tourism, the World Bank’s Cambodia Economic Update for December 2022 said.

According to the report, Cambodia’s garment industry, travel goods and footwear exports have been resilient. The services sector, especially travel and tourism, has done well since the introduction of the “Living with COVID-19” strategy in late 2021, and total international visitor arrivals have steadily increased, reaching 1.2 million in the first nine months of 2022. Business and consumer confidence have risen and both domestic and foreign investment have increased.

Economic growth is projected to accelerate to 5.2 percent in 2023 as increased hiring supports rising domestic consumption and as inflation recedes.
https://www.akp.gov.kh/post/detail/268038
Join the Cambodia Expats Online Telegram Channel: https://t.me/CambodiaExpatsOnline

Cambodia Expats Online: Bringing you breaking news from Cambodia before you read it anywhere else!

Have a story or an anonymous news tip for CEO? Need advertising? CONTACT US

Cambodia Expats Online is the most popular community in the country. JOIN TODAY

Follow CEO on social media:

Facebook
Twitter
YouTube
Instagram
User avatar
armchairlawyer
Expatriate
Posts: 2490
Joined: Sat Aug 29, 2015 1:43 pm
Reputation: 1503
Cambodia

Re: ECONOMY Cambodia's new COVID crisis clips growth prospects - article from Nikkei Asia Review

Post by armchairlawyer »

More from the World Bank, with a specific wish list at the end:

Key Findings

Cambodia’s economy is recovering from the COVID-19 related slowdown, boosted by resilient exports. However, the country faces global economic headwinds as world trade growth slows.

The World Bank has upped its projection for Cambodia’s real GDP growth to 4.8 percent in 2022, on the back of the broader economic recovery. Garment, travel goods, and footwear exports remain notably buoyant. Earnings from services, especially travel and tourism, have also improved following the introduction of the “living with COVID-19” strategy late last year.

Inflation is rising in Cambodia, as elsewhere, and is particularly harmful to poor households, some of whom are forced to reduce food consumption and withdraw children from school. This could have long-term effects on human capital, causing losses in worker productivity and welfare, and disparities in income.

Monetary policy continues to underpin the economic recovery, with confidence in the banking system high. Domestic credit growth is strong and the exchange rate stable. Domestic revenue growth has now fully recovered, while expenditure is expected to decelerate after last year’s spending on pandemic relief measures. The fiscal deficit is therefore projected to narrow, although it is still relatively large at 4.6 percent of GDP and will remain largely financed by external borrowing.

Despite recovery, real growth projection for 2023 has been downgraded to 5.2 percent due to the projected slowdown in global trade, especially in the United States and China. These are Cambodia’s largest export market and source of foreign direct investment respectively.

However, the medium-term outlook is positive, with free-trade agreements supporting growth in agricultural production and agroprocessing. Strong investment in several infrastructure projects will benefit many sectors, including tourism and hospitality, which are likely to accelerate further.

If elevated energy prices linger, deteriorating terms of trade will undermine consumer confidence and corporate profitability. Meanwhile, high credit growth and the concentration of domestic credit in the construction and real estate sectors remain key risks to financial stability.

To ensure sustainability, Cambodia must regain fiscal space. To this end, the World Bank recommends:

Broadening the tax base.

Safeguarding financial stability.

Promoting domestic economic sectors, particularly in travel, tourism, and hospitality.

Addressing supply chain constraints, which include high logistic and transportation costs, as well as easing supply-side bottlenecks by reducing the costs of energy, doing business and licensing. This would help export businesses revive external competitiveness.

The Special Focus section of the report looks at poverty to identify the implications of inflation on the most vulnerable segments of the population, and the measures that could be taken to alleviate ensuing economic hardship.

Data shows that during the COVID-19 pandemic, more than 60 percent of Cambodian households and about 90 percent of poor households reduced their food consumption. The national school dropout rate increased in 2019/20, reversing years of declining trends, and about 14 percent of poor children aged 6-17 dropped out in early 2022.

A simulation analysis suggests that current inflation could increase poverty substantially.

Well-targeted and temporary expansions to social protection programs, notably through cash transfers, would substantially mitigate poverty and protect the poor and vulnerable.

https://www.worldbank.org/en/country/ca ... -headwinds (includes a video)

The full report in pdf format - https://documents1.worldbank.org/curate ... 5a22df.pdf
User avatar
CEOCambodiaNews
Expatriate
Posts: 62322
Joined: Sun Oct 12, 2014 5:13 am
Reputation: 4033
Location: CEO Newsroom in Phnom Penh, Cambodia
Contact:
Cambodia

Re: ECONOMY Cambodia's new COVID crisis clips growth prospects - article from Nikkei Asia Review

Post by CEOCambodiaNews »

NBC Forecasts a Robust Economic Growth in 2023
AKP Phnom Penh, January 11, 2023 --

The National Bank of Cambodia (NBC) has forecast the country’s economic growth of around 6 percent in 2023, driven by growth in the garment, non-garment manufacturing and tourism sectors.

In the Macroeconomic and Banking Sector Development in 2022 and Outlook for 2023 released on Jan. 11, the National Bank of Cambodia said that the robust growth will continue to reach around 6 percent in 2023, despite the global uncertainty.

The increase will be supported by the expectations of a 6.5 percent growth in the garment sector and a 14.3 percent increase in non-garment manufacturing products, the report read.

The tourism sector is expected to grow by 18.5 percent due to the increase in domestic tourists and the rapid growth of foreign arrivals, with the growing number of flights to Cambodia and the increase in the number of Chinese tourists after the Chinese government eased travel restrictions, stated the report.

The agricultural sector is projected to grow better than 2022 at 1.1 percent, contributing to the entry into force of the Regional Comprehensive Economic Partnership (RCEP) Agreement and the bilateral free trade agreements and the removal of tariffs on Cambodia's rice imports to the European market, NBC said.

The construction and real estate sectors, however, are expected to continue to grow slowly at 1.7 percent and 1.2 percent, respectively, supported by growing domestic demand, focusing on the affordable real estate market.

The recovery of the domestic economy is expected to support an increase in international reserves, which guarantee seven months of imports of goods and services for the next period due to increased inflows of foreign direct investment, exports, tourism and other sources.

By Chea Vannak
AKP
Join the Cambodia Expats Online Telegram Channel: https://t.me/CambodiaExpatsOnline

Cambodia Expats Online: Bringing you breaking news from Cambodia before you read it anywhere else!

Have a story or an anonymous news tip for CEO? Need advertising? CONTACT US

Cambodia Expats Online is the most popular community in the country. JOIN TODAY

Follow CEO on social media:

Facebook
Twitter
YouTube
Instagram
User avatar
CEOCambodiaNews
Expatriate
Posts: 62322
Joined: Sun Oct 12, 2014 5:13 am
Reputation: 4033
Location: CEO Newsroom in Phnom Penh, Cambodia
Contact:
Cambodia

Re: ECONOMY Cambodia's new COVID crisis clips growth prospects - article from Nikkei Asia Review

Post by CEOCambodiaNews »

Cambodia Lower 2023 Economic Growth Forecast from 6.6% to 5.6%
25 January 2023
Phnom Penh (FN), Jan. 25 – Cambodian secretary of state of the Ministry of Economy Vongsey Visoth confirmed that based on the latest assessment in 2023, Cambodia's economic growth is estimated to reach only 5.6 percent, compared to the previous prediction of 6.6 percent.

Vongsey Visoth spoke in a public forum on macroeconomic management and budget law 2023, held on Wednesday morning (Jan 25) at Sofitel Phnom Penh Phokeethra.

"Cambodia's economic growth is expected to grow by only 5.6 per cent based on the latest assessment. The new data was approved by Cambodian prime minister HE to be the most realistic data and is similar to the projection made by major international institutions," Visoth underscored.

According to the assessment of the Cambodian economy, the economic growth of 5.2 percent in 2022 is due to the recovery of the tourism sector, domestic consumption through wholesale and retails, and the strong manufacturing industries that boost garment exports.

"Compared to 2022, the economic growth in 2023 will be slightly higher due to a modest recovery in agriculture of 1.1 percent, while there was only 0.7 percent in 2022, and the non-garment manufacturing products 5.5 percent. Hopefully, there will be an increase in the tourism sector given the fact that many tourists are visiting Thailand and Viet Nam. Cambodia’s hosting SEA Games also play a major role in the economic growth," he continued.

However, the construction and real estate sectors remain in a slump in 2022 and 2023, with the slowdown likely to continue if foreign investment conditions slow down, he added.
=FRESH NEWS
Join the Cambodia Expats Online Telegram Channel: https://t.me/CambodiaExpatsOnline

Cambodia Expats Online: Bringing you breaking news from Cambodia before you read it anywhere else!

Have a story or an anonymous news tip for CEO? Need advertising? CONTACT US

Cambodia Expats Online is the most popular community in the country. JOIN TODAY

Follow CEO on social media:

Facebook
Twitter
YouTube
Instagram
User avatar
CEOCambodiaNews
Expatriate
Posts: 62322
Joined: Sun Oct 12, 2014 5:13 am
Reputation: 4033
Location: CEO Newsroom in Phnom Penh, Cambodia
Contact:
Cambodia

Re: ECONOMY Cambodia's new COVID crisis clips growth prospects - article from Nikkei Asia Review

Post by CEOCambodiaNews »

Monthly Taxes Further Exempted for Tourism-related Businesses
AKP Phnom Penh, February 01, 2023 --

The Royal Government of Cambodia (RGC) has decided to continue to exempt all types of monthly taxes, except VAT, for tourism-related businesses such as hotels, guesthouses and travel agencies which have registered with the General Department of Taxation and have business activities in Siem Reap province.

The exemption will be extended for three more months, from January to March 2023, according to the RGC’s new directive issued early this week.
https://www.akp.gov.kh/post/detail/271282
Join the Cambodia Expats Online Telegram Channel: https://t.me/CambodiaExpatsOnline

Cambodia Expats Online: Bringing you breaking news from Cambodia before you read it anywhere else!

Have a story or an anonymous news tip for CEO? Need advertising? CONTACT US

Cambodia Expats Online is the most popular community in the country. JOIN TODAY

Follow CEO on social media:

Facebook
Twitter
YouTube
Instagram
User avatar
CEOCambodiaNews
Expatriate
Posts: 62322
Joined: Sun Oct 12, 2014 5:13 am
Reputation: 4033
Location: CEO Newsroom in Phnom Penh, Cambodia
Contact:
Cambodia

Re: ECONOMY Cambodia's new COVID crisis clips growth prospects - article from Nikkei Asia Review

Post by CEOCambodiaNews »

Forging a more inclusive and resilient post-pandemic recovery in Cambodia
Wendy Karamba
March 29, 2023

The Cambodia Poverty Assessment 2022 shows that Cambodia made remarkable progress reducing poverty over the past decade, but that recent gains in reducing poverty were threatened by the COVID-19 pandemic.

Progress

Between 2009 and 2019, Cambodia grew rapidly and reduced poverty. Exports and foreign investment inflows into manufacturing and services fostered growth and created nonfarm jobs, many of which were more productive and raised incomes. As most of these jobs were labor-intensive, they absorbed many low-income agricultural workers. This reallocation of workers to more productive sectors of the economy and the sizeable increase of non-farm earnings bolstered household income and enhanced welfare. Cambodia’s national poverty rate plunged from 33.8 percent to 17.8 percent between 2009 and 2019/20, a reflection of economic growth that averaged 7 percent over the period.

Image
Source: Ministry of Planning (2021).
Note: Urban = Phnom Penh and other urban areas.
Poverty estimates are based on the revised poverty lines using the Cambodia Socio-Economic Survey 2019/20.


Thanks to rising earnings and remittances, improved service delivery, and pro-poor social assistance, standards of living increased faster in rural areas than in towns and cities, narrowing the urban-rural income gap.
Full article: https://blogs.worldbank.org/eastasiapac ... y-cambodia
Join the Cambodia Expats Online Telegram Channel: https://t.me/CambodiaExpatsOnline

Cambodia Expats Online: Bringing you breaking news from Cambodia before you read it anywhere else!

Have a story or an anonymous news tip for CEO? Need advertising? CONTACT US

Cambodia Expats Online is the most popular community in the country. JOIN TODAY

Follow CEO on social media:

Facebook
Twitter
YouTube
Instagram
Post Reply Previous topicNext topic
  • Similar Topics
    Replies
    Views
    Last post

Who is online

Users browsing this forum: No registered users and 141 guests