Publication: Cambodia Economic Update: Navigating Global Economic Headwinds
Loading...
Published
2022-12
ISSN
Date
2023-01-06
Author(s)
Editor(s)
Abstract
While recovering from Coronavirus (COVID-19),Cambodia’s economy is now facing global economic headwinds. The current account improved in the first half of 2022 as the trade deficit narrowed. Rising global energy, fertilizer and food prices prompted a surge in inflation. Rising inflation is particularly harmful to poor households. To mitigate impacts of the food and oil price shock, the authorities are planning to introduce additional social assistance measures, while extending the existing COVID19 cash transfer program until end-2022. Promoting the domestic economic sectors, focusing on the travel, tourism, and hospitality industries should help partly offset the deterioration of external demand conditions. And successful facilitation of coherent private sector leadership of the sector should help create a “crowding-in” effect, anchored to comprehensive long-term plans, catalyzed by public seed funding. It is equally important to address supply chain constraints, which include high logistics and transportation costs to boost export.
Link to Data Set
Citation
“World Bank. 2022. Cambodia Economic Update: Navigating Global Economic Headwinds. © World Bank. http://hdl.handle.net/10986/38371 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Cambodia Economic Update, April 2018(World Bank, Phnom Penh, 2018-04)While the economy continues to expand rapidly in Cambodia, real GDP growth eased to 6.8percent in 2017 from 7 percent in 2016. Cambodia therefore bucked the regional trend, asmost developing countries in East Asia experienced a growth acceleration in 2017. Followingsome moderation during the first half of 2017, textile and apparel exports rebounded. Thetourism and agriculture sectors experienced initial recovery in the last few years after facinggradual moderation. Growth is projected to remain robust, expanding at 6.9 percent in 2018.Downside risks to the outlook include erosion of export competitiveness due to rapidly risingreal wages, a buildup of vulnerabilities from a prolonged real estate and construction boom,potential election-related uncertainty, and periodic jolts to the international trade order inthe form of protectionism and escalating trade disputes. This edition of Cambodia economic update is focusing on findings of future jobs in Cambodia.Publication Cambodia Economic Update, May 2023(Washington, DC: World Bank, 2023-06-27)Cambodia’s economic recovery solidified in 2022 with real growth accelerating to 5.2 percent. After shifting to “living with COVID-19” in late 2021, the economy is firmly on a path to recovery and has now returned to its pre-pandemic growth trajectory. Initially led by the strong performance of export-oriented manufacturing, growth drivers are rotating to the services and agriculture sectors. Meanwhile, the agriculture sector is benefitting from improved access to regional markets, thanks to newly ratified bi-lateral and regional free trade agreements. Weakening external demand is, however, starting to weigh on the country’s economic recovery. Despite weakening goods export performance, the current account balance is improving, thanks to the rebound in the travel and tourism industry and remittances, while the oil price shock eased. The economic recovery and good revenue administration underpinned an across-the board improvement in domestic revenue collection. The authorities continued to provide cash transfers for poor and vulnerable households, although the worst of the pandemic is now behind us. In this regard, the Cambodian authorities have extended the COVID-19 cash transfer program, with an additional budget. To enhance the long-term resilience and competitiveness of the economy, efforts are needed to further promote export product diversification.Publication Cambodia Economic Update, June 2024(Washington, DC: World Bank, 2024-06-14)Cambodia has made significant strides in expanding access to education over the past decade. The country’s net enrollment rates have increased steadily, with primary education attendance reaching 90 percent in 2019, up from 81 percent in 2009. Similarly, enrollments at the lower and upper secondary levels have shown good progress. Despite these improvements, Cambodia still faces numerous challenges in providing quality education to all its citizens. The recent COVID-19 pandemic has further exposed the vulnerabilities of the education system, with prolonged school closures leading to substantial learning losses. Even prior to the pandemic, Cambodia already faced high learning poverty rates, with students scoring low in both Khmer and mathematics. Moreover, disparities in access to education, especially at the secondary level, and variations in learning outcomes, persist across different geographic locations and socioeconomic backgrounds. This Special Focus chapter on education delves more deeply into these critical issues. By examining educational access, spending, outcomes, teacher effectiveness, and foundational learning, we seek to provide actionable policy recommendations to strengthen Cambodia’s education system. The chapter will address the following areas: access and equity in education, with a focus on early childhood education and primary schooling and an examination of trends in enrollment and learning outcomes and a discussion of strategies to enhance access and quality; trends in education spending and the relationship to learning outcomes and the need to focus on spending better; and the importance of teacher effectiveness and policies to improve teacher recruitment, training, and deployment. The final section summarizes the key findings and provides policy recommendations that prioritize spending better, improving teacher effectiveness, and strengthening foundational learning.Publication Clear Skies : Cambodia Economic Update, October 2014(Washington, DC, 2014-10)This issue of the Cambodia economic update covers the following selected issues: 1) making the most of the Cambodian rise sector; and 2) creating opportunities for firms as reflected in findings from the investment climate assessment. For FY2014 economic growth held up well despite domestic uncertainty and instability in neighboring countries. Real growth is estimated to reach 7.2 percent, driven by the garment, construction, and services sectors. Overall macroeconomic management has been good with fiscal consolidation underpinned by improved revenue administration. In 2015 with the expectation of renewed confidence and the return of political stability after ending a yearlong political deadlock in July 2014, bolstered by a strengthening global economy, Cambodia's real growth rate is expected to reach 7.5 percent, similar to that of 2013. The downside risks to the projected robust growth are a potential recurrence of labor unrest, natural disasters, especially the possibility of heavy floods, as well as regional political uncertainty. Concerning rice production, growth decelerated in 2013 highlighting the importance of revitalizing the rice sector so it becomes once again a key engine of GDP growth. While the milled-rice export market is steadily expanding and increasing the number of destination markets, the milling and transport costs of Cambodian rice make it loose the competitiveness it has at farm gate prices. The Royal Government of Cambodia (RGC) has set a very legitimate target of one million tons of milled rice exports that matters tremendously for poverty reduction and shared prosperity. Concerning the investment climate assessment findings, RGC's new five-year Rectangular Strategy III continues to prioritize improving the business environment to help diversify and increase value-added in production. The current period of robust growth represents an opportunity to make improvements to the business environment that will attract long-term investors. Proposed next steps in reforming the business environment include: a) addressing the high cost of electricity; b) automating government processes; c) encouraging new investment, particularly in special economic zones; d) continuing improvements to trade facilitation; e) completing the draft Competition Law; f) designing and implementing a system of incentives for business registration; and g) focusing on implementation and enforcement.Publication Resilience Amidst a Challenging Environment : Cambodia Economic Update, September 2013(Washington, DC, 2013-09)According to the June 2013 global economic prospects, the global economic environment remains fragile, although the balance of risks is now less skewed to the downside than it has been in recent years. The US has been signaling an exit from quantitative easing. Developing country currencies have come under pressure, and their interest rates have been on the rise, contributing to inflation and weaker growth. This may complicate in particular those economies that have seen big increases in credit during the period when interest rates were low, or where current account and government deficits are high. Developing economies remain the main driver of global growth, but their output has slowed compared with the pre-crisis period. The Cambodian economy remains robust amidst the challenging global economic environment, and prospects for meeting the growth projection of 7 percent in 2013 appear favorable. In sum, the key messages include: (a) sustain robust growth by promoting diversification and enhancing competitiveness; (b) maintain banking and financial stability with effective supervision; and (c) improve fiscal management by increasing revenue and more efficient spending.
Users also downloaded
Showing related downloaded files
Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.Publication Morocco Economic Update, Winter 2025(Washington, DC: World Bank, 2025-04-03)Despite the drought causing a modest deceleration of overall GDP growth to 3.2 percent, the Moroccan economy has exhibited some encouraging trends in 2024. Non-agricultural growth has accelerated to an estimated 3.8 percent, driven by a revitalized industrial sector and a rebound in gross capital formation. Inflation has dropped below 1 percent, allowing Bank al-Maghrib to begin easing its monetary policy. While rural labor markets remain depressed, the economy has added close to 162,000 jobs in urban areas. Morocco’s external position remains strong overall, with a moderate current account deficit largely financed by growing foreign direct investment inflows, underpinned by solid investor confidence indicators. Despite significant spending pressures, the debt-to-GDP ratio is slowly declining.Publication Europe and Central Asia Economic Update, Spring 2025: Accelerating Growth through Entrepreneurship, Technology Adoption, and Innovation(Washington, DC: World Bank, 2025-04-23)Business dynamism and economic growth in Europe and Central Asia have weakened since the late 2000s, with productivity growth driven largely by resource reallocation between firms and sectors rather than innovation. To move up the value chain, countries need to facilitate technology adoption, stronger domestic competition, and firm-level innovation to build a more dynamic private sector. Governments should move beyond broad support for small- and medium-sized enterprises and focus on enabling the most productive firms to expand and compete globally. Strengthening competition policies, reducing the presence of state-owned enterprises, and ensuring fair market access are crucial. Limited availability of long-term financing and risk capital hinders firm growth and innovation. Economic disruptions are a shock in the short term, but they provide an opportunity for implementing enterprise and structural reforms, all of which are essential for creating better-paying jobs and helping countries in the region to achieve high-income status.Publication Argentina Country Climate and Development Report(World Bank, Washington, DC, 2022-11)The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.