Due to the economic growth of Southeast Asia, increased trade with China and other countries, a young, active population, and rising literacy levels, Cambodia has a promising future for growth.
More than $1 billion has been spent in Cambodia to combat COVID-19, and herd immunity was attained as a result of the government’s enormous efforts. The Asian Development Bank estimates that Cambodia spent $1.36 billion, or around 5.1 percent of its GDP, in the fight against COVID-19.
Funding was allocated for the Covid-19 Cash Transfer Program (CCTP), vaccine purchases from Sinopharm, Sinovac, and AstraZeneca, as well as crucial investments for the modernization of healthcare infrastructure, including testing facilities, wage cost sharing, tax deferment, credit availability, and other aspects.
Under Prime Minister Hun Sen’s leadership, Cambodia ranked among the top in managing the COVID-19 pandemic.
The government is likely to spend a lot more money this year.
Following the pandemic, the tourist hubs of Cambodia are blossoming into flourishing metropolises.
China made about US$15 billion (£12.36 billion) in infrastructure investments in Cambodia including US$11 billion in the energy sector alone. Ports, airports, and roads/expressways were also included in the infrastructure.
Bilateral trade between China and Cambodia totaled $11.2 billion in 2021.
According to a recent Asian Development Bank (ADB) report, strong merchandise exports and foreign direct investment inflows would contribute to Cambodia’s economy expanding by 5.3% in 2022 and 6.5% in 2023.
Industry output is anticipated to increase by 8.1% in 2022 and by 9.1% in 2023, according to the Asian Development Outlook (ADO) 2022.
The gradual recovery of tourism will support demand for lodging, restaurants, transportation, and other in-person services. The reopening of the economy and the high vaccination coverage will also enable this to happen.
Cambodia, which has historically concentrated on producing and exporting garments, travel accessories, and footwear, can gain from diversifying into light manufacturing, such as the production of bicycles, electronics, and electrical items. The economy will be more able to withstand changes to external demand due to the diversification.
In order to lessen the COVID-19’s detrimental effects on businesses and people’s incomes as well as to help economic recovery, the government has put regulations into place.
The World Bank states that Cambodia has made a substantial change over the past 20 years, reaching lower middle-income status in 2015 and aiming to reach upper middle-income status by 2030.