PHNOM PENH: In the ‘Cambodia Economic Updates for December 2022’ report, the World Bank says the Cambodian economy grew by 4.8% in 2022, with post-Covid-19 economic recovery accelerating due to the recovery of the tourism sector.

The report also states that Cambodia's garment and footwear industries remain strong, and the services sector, especially in tourism, is doing well after the government launched the ‘Live with Covid-19’ strategy at the end of 2021, with the total number of international visitors reaching 1.2 million in the first nine months of 2022.

"Cambodia should take measures to strengthen its fiscal policies and boost the local economy, especially its attractive tourism industry, to protect its economy from the impact of falling demand abroad," said World Bank Country Director for Myanmar, Cambodia, and Laos, Mariam Sherman.

"Revenues have increased due to economic recovery and the improvement of the administration,” she added. “Expanding the tax base will help ensure the necessary resources for Cambodia's economic growth and to cope with the economic downturn among major trading partners; tourism and hospitableness are potential sectors for future growth.”

The World Bank report also states that global trade plummeted in the second half of 2022 and is expected to decline sharply in 2023. The economies of developing countries such as Cambodia are particularly vulnerable, especially as global inflation rises, global economic growth slows, energy supplies decline, and interest rates rise.