Logo of Phnom Penh Post newspaper Phnom Penh Post - Kingdom’s economy insulated: officials

Kingdom’s economy insulated: officials

Content image - Phnom Penh Post
Vongsey Visoth, Secretary of State of the Ministry of Economy and Finance holds a meeting announcing the Budget for 2017 yesterday in Phnom Penh. Hong Menea

Kingdom’s economy insulated: officials

Speakers at a government forum held yesterday on macroeconomic management and the 2017 budget law said Cambodia’s strong economic growth has been largely unscathed by China’s slowdown, though clouds were forming on the horizon.

Vongsey Vissoth, secretary of state at the Ministry of Economy and Finance (MEF), said Cambodia could expect to continue on course at around 7 percent gross domestic product (GDP) growth in 2017 despite uncertainty over the health of the global economy. He said the Kingdom’s economy has been a bright spot in the world economy, weathering the effects of China’s slowdown and other external pressures.

“Our priority at this time is to maintain a growth rate of 7 percent as long as possible and distribute the achievements of the economy to all the people that benefit from it,” he said.

According to MEF projections released yesterday, Cambodia’s GDP will reach $22.3 billion this year, with the agricultural sector increasing by nearly 2 percent while the industrial sector is pegged to expand by an impressive 10.7 percent. The service sector is predicted to enlarge by 6.3 percent.

Despite the optimistic forecast, concerns were raised at the forum about the slower growth of China’s economy, US dollar appreciation, the increasing price of oil and the United Kingdom’s intention to leave the European Union.

“Slower growth of the Chinese economy could affect Cambodia’s economy especially in the trade and financial sectors,” said Chheang Vanarith, director of the macroeconomic and fiscal policy department at the MEF. “The increasing price of oil will affect the cost of goods in the market because Cambodia has to import all of its oil.”

The forum comes a day after the National Bank of Cambodia released its annual report, which reported a surge in foreign direct investment (FDI) despite a feared slowdown in investment from China.

Total capital inflows of FDI topped $2.15 billion in 2016, a 25 percent increase over the previous year, according to the report.

China remained Cambodia’s largest source of FDI last year, contributing $511 million, with another $237 million coming from Hong Kong.

MOST VIEWED

  • Two luxury hotels latest quarantine options for inbound travellers

    The Inter-Ministerial Committee to Combat Covid-19 has designated two luxury hotels as alternative quarantine options for travellers who wish to enter Cambodia through Phnom Penh International Airport – Sokha Phnom Penh Hotel & Residence and the Courtyard by Marriott Phnom Penh. In a notice detailing guidelines issued

  • Visa A holders get to quarantine at Himawari Hotel

    The Ministry of Health has permitted foreign diplomats, UN and International NGO officials to undergo quarantine at Himawari Hotel in the capital in case they do not have a separate place suitable for this purpose, but the government would not be responsible for the expenses.

  • Baby saved as mother is lost to Covid

    Newborn baby Neth David has had a rough start in the world. His mother, Vong Daneth, was seven months pregnant when she contracted a severe case of Covid-19. When it became clear to her doctors that she would not survive, they performed a cesarean section

  • Jabs for kids bring hope for school reopenings

    Cambodia is tentatively planning to reopen schools – at least at the secondary level – when the vaccination of children aged 12-17 is completed, even though daily transmissions and deaths in other age groups remain high. Schools across the country have been suspended since March 20, one month

  • Governor: Covid subsides in capital

    Phnom Penh municipal governor Khuong Sreng said the Covid-19 situation in the capital’s 14 districts has eased, with only two districts still recording a high number of infections. “Transmission cases in all districts are dropping, though they are relatively higher Meanchey and Por Sen Chey.

  • Hun Sen: Get 12-17 age group ready for Covid jabs

    Prime Minister Hun Sen has told parents of children aged 12-17 in Phnom Penh and the provinces of Kandal and Preah Sihanouk to get them ready for vaccinations soon. “There is a need to vaccinate children and youths aged 12 to 17. According to the statistics provided