Economy

World Bank Projects 4.5 percent Economic Growth for 2022

A World Bank report has projected Cambodia’s economy will grow 4.5 percent in 2022, lower than the International Monetary Fund’s forecast of 5 percent and the Asian Development Bank’s 5.3 percent estimate.
Shoppers at Phnom Penh's Central Market, September 27, 2022. Kiripost/Siv Channa
Shoppers at Phnom Penh's Central Market, September 27, 2022. Kiripost/Siv Channa

Growth in most countries in the East Asia and Pacific (EAP) region rebounded in the first half of 2022, with Cambodia’s economy growing 4.5 percent, a World Bank report said on Tuesday.

The report, Reforms for Recovery, said that China lost momentum, with its economy slowing in the first half of 2022.

In much of the region, domestic demand revived after the impact of the Covid-19 Delta wave. In China, public health measures to contain outbreaks of the highly infectious Omicron variant inhibited consumption.

However, most of the region is projected to grow faster and have lower inflation in 2022 than other global regions.

The bank’s growth forecast for Cambodia for October 2022 is 4.8 percent and 5.2 percent for 2023.

The World Bank forecast is lower than the International Monetary Fund’s (IMF). Last week, the IMF said the Cambodian economy is forecast to grow 5 percent in 2022, after strong export performance earlier in the year.

The IMF added that the growth is forecast to be nearly 5.5 percent in 2023, supported by the continued recovery of tourism and ongoing policy support, although dampened by external pressures and the impact of rising prices on real disposable income.

Last week, the Asian Development Bank (ADB) maintained its economic growth forecast for Cambodia at 5.3 percent in 2022 but lowered its 2023 forecast to 6.2 percent from 6.5 percent due to weaker global growth.

Cambodia’s garments, travel goods, and footwear outputs remained robust, registering 39.8 percent year-on-year growth in the first half of 2022, despite the economic slowdown in the United States and Europe, the ADB said.

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