Illustrative image (Photo: AFP) Phnom Penh (VNA) – The Asian Development Bank (ADB) has projected that the Cambodian economy will grow by 4 percent this year and 5.5 percent next year, led by a robust recovery of its major trade partners.
In the Asian Economic Outlook 2021, announced on May 28, the lender forecast that the country’s industrial production will expand by 7.1 percent this year and 7 percent next year thanks to the recovery of apparel, footwear, and travel items as well as the growth of electronics and bicycle assembling.
Agriculture is expected to grow by 1.3 percent in 2021 and 1.2 percent in 2022, while services may recover more slowly, expanding by 3.3 percent in 2021 and 6.2 percent in 2022. Efforts to contain a local outbreak of COVID-19 that began in February are dampening service sector activities, ADB noted.
ADB Country Director for Cambodia Sunniya Durrani Jamal stressed that amid this challenging environment, fiscal policy remains crucial, as the rollout of a broad fiscal stimulus package has played a vital role in supporting the economy./.
