PHNOM PENH: The World Bank has projected Cambodia's economic growth at 2.2S% this year, impeded by slow growth in services including tourism, and in construction, and real estate based on its latest Economic Update for the kingdom released on Thursday.

It says that the traditional growth drivers - the garment, travel goods, footwear, and bicycle manufacturing industries, as well as agriculture, are underpinning the economic recovery, according to Living with COVID-19.

World Bank Country Manager for Cambodia Maryam Salim says, "As we all know, Cambodia is now living with COVID-19 and very large numbers of populations have been vaccinated and the government began reopening the country for business, while continuing to enforce protective health measures”.

She has added that they are preparing a Performance and Learning Review that will allow us to further strengthen and align our partnership with Cambodia as the country strives to achieve a resilient recovery from the impact of the COVID-19 pandemic.

The report recommends key reforms areas, including, clear rules and regulations on living with COVID-19 under the "new normal", regulatory and fiscal measures that support revival in the tourism sector, and prompt introduction of regulations to implement the new investment law to jump start the economic recovery.

It also says as the economic recovery takes shape, Cambodia can then start rebuilding its fiscal space and continues to monitor asset quality and improve confidence in the banking system.