Publication: Cambodia Economic Update, June 2021: Road to Recovery
Date
2021-06-15
ISSN
Published
2021-06-15
Author(s)
World Bank
Abstract
After contracting by 3.1 percent in
2020, Cambodia’s economy has gradually recovered. The
recovery is, however, uneven, partial, and volatile in part
due to the re-introduction of a domestic lockdown, triggered
by recent flare-ups of coronavirus infections. Like many
countries in the region, Cambodia has been hit hard by
global demand shock and coronavirus-related shutdowns which
have had predictably uneven economic impacts across sectors.
The agriculture sector has been relatively resilient in the
face of the coronavirus shock. In addition, it has been
boosted by increased investment, thanks to good prospects of
the newly signed Cambodia-China Free Trade Agreement (CCFTA)
and Regional Comprehensive Economic Partnership (RCEP).The
manufacturing sector sharply contracted last year, but
appears to have gradually recovered since, as it has adapted
to changing external conditions. The easing of the
traditional manufacturing industries, namely garment,
footwear, and travel (GFT) goods has been partly offset by
the expansion of the newly emerging manufacturing
(electrical, electronic and vehicle parts including
bicycles) and agroprocessing industries. Parts of the
services sector such as accommodation, restaurants and
transport continue to be hit hard by slowdown in domestic
and international tourism, while wholesale and retail trade
has managed to slowly recover, supported by a gradual
revival in domestic economic activity.
Citation
“World Bank. 2021. Cambodia Economic Update, June 2021 : Road to Recovery. © World Bank, Phnom Penh. http://openknowledge.worldbank.org/handle/10986/35783 License: CC BY 3.0 IGO.”