Govt expects Cambodia to grow at 6% this year

Govt expects Cambodia to grow at 6% this year

The Royal Government of Cambodia expects the country’s economy to grow by six percent this year which tallies with the projection for the country made by the International Monetary Fund (IMF) recently and is also close to the 5.8 percent forecast given by the World Bank and the Asian Development Bank (ADB).

Sharing the government’s expectations yesterday at an event organized in connection with the opening of ADB’s new Cambodia Resident Mission in Phnom Penh, Aun Pornmoniroth, the Deputy Prime Minister and Minister of Economy and Finance, said that the economy was also assessed to have grown by five percent last year.

The Deputy Prime Minister said that the Royal Government of the 7th Mandate is working tirelessly to address the many challenges, even as it attempts to grab the emerging economic opportunities in the backdrop of the rapidly changing socio-economic situation of the region and the world.

The Pentagonal Strategy Phase 1, being implemented by the government with five key priorities such as people, roads, water, electricity, and technology, will ensure growth, employment, equity, efficiency, and sustainability, Pornmoniroth said.

He added that the ongoing digital transformation of the Cambodian economy and society is further promoting productivity and helping the country to achieve ‘Cambodia Vision 2050’ of becoming a high-income country.

“Cambodia’s growth will also be driven by the resurgence of the global economy, especially those of Cambodia’s trading partners,” the Deputy Prime Minister stressed.

While congratulating the management and staff of ADB Cambodia Resident Mission for the new and modern office at Vattanac Capital in the city, Pornmoniroth recalled the long association between the Kingdom and ADB.

“ADB has been a long-standing and trusted development partner of Cambodia, contributing significantly to the country’s development,” he said and thanked the bank for the long-standing partnership.

ADB’s financing supported priority sectors such as agriculture, water supply, urban development, transportation, information technology, industry, commerce, finance, public administration, education, skills development, health and energy, the Deputy Prime Minister noted.

“This inauguration coincides with the launch of the new Country Partnership Strategy of ADB for 2024-2028, in which it has committed approximately $1.26 billion to support 22 projects or programmes in Cambodia. This support is crucial for Cambodia to achieve its 2030 milestone of becoming an upper middle-income country and 2050 mission of becoming a high-income country,” he said.

ADB President Masatsugu Asakawa, who was present on the occasion, said that the ceremony is not just a celebration of a new and modern office, but a recognition of the deep bonds and shared development goals between ADB and Cambodia.

“ADB’s partnership with Cambodia has been characterized by strong cooperation and mutual respect. Our efforts have spanned multiple sectors, focusing on enhancing rural infrastructure, education, agriculture, and health services, all with the aim of improving the lives and livelihoods of Cambodian people,” Asakawa said.

In a reference to ADB’s latest Cambodia Country Partnership Strategy for 2024–2028, he said it is tailored to Cambodia’s unique needs and priorities.

“It emphasizes economic diversification, human capital development, and climate resilience, while advancing crosscutting priorities like governance, gender equality, digitalization, and regional cooperation and integration,” the ADB chief noted.

As of December 31, 2023, ADB has committed 339 public sector loans, grants, and technical assistance totaling $4.8 billion to Cambodia. ADB’s active sovereign projects include 34 loans and eight grants worth $1.92 billion.

Cambodia joined ADB in 1966 as a founding member, followed by the implementation of its first ADB-supported project in 1970.

According to the press release, the new office, designed with climate-friendly materials and energy-efficient systems, serves as a modern and collaborative workspace.

It features several traditional cultural motifs from Cambodia, reflecting the country’s rich heritage. This move underlines ADB’s commitment to sustainability and its dedication to providing a conducive working environment for its staff, it said.

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