WEEKLY ECONOMIC UPDATED
Updated: 23 February-01 March, 2019

TRADE & COMMERCE | India Seeks Broader Trade With Cambodia

The president of the Federation of Indian Chambers of Commerce and Industry (FICCI) said India is considering expanding its investments in the Kingdom, particularly in science and technology, tourism infrastructure and manufacturing. During a meeting on the sidelines of the 4th India-Asean Expo and Summit held in New Delhi last week, FICCI president Sandip Somany told Cambodia’s Minister of Commerce Pan Sorasak that India seeks to broaden trade with the Kingdom, according to a statement from the Cambodian Ministry of Commerce. (February 26 , 2019 | Khmer Times)

TRADE & COMMERCE | Cambodia Very Attractive To German Firms: Germany

German investors and businesses are very interested in the Cambodian market, where they continue to find great support from the government, a German lawmaker said. During a meeting with Prime Minister Hun Sen on Monday, Norbert Barthle, a member of the Bundestag, the German federal parliament, said Cambodian presents lucrative opportunities to German companies, according to a press release issued by the prime minister’s office. (February 27, 2019 | Khmer Times)

TOURISM | Tourism Revenue Up 20 Percent

The tourism sector earned $4.3 billion in revenue last year, an increase of around 20 percent, according to the latest figures from the Ministry of Tourism. Thong Khon, the Minister of Tourism, revealed the figure at this year’s National Clean City Day, an event held yesterday at Sokha Phnom Penh Hotel in which the winners of the ‘green tourism’ and ‘best hospitality’ awards were announced. (February  26, 2019 | Khemer Times)

 

TOURISM | Cambodia Tots Up Tourism Tally

PHNOM PENH, 27 February 2019:  Cambodia earned an estimated USD4.35 billion in 2018 from tourism, an increase of 19.8% when compared with USD3.63 billion in 2017, Tourism Minister Thong Khon reported on Monday. He was addressing a gathering in Phnom Penh to mark the country’s seventh annual National Clean City Day. Quoted by the Xinhua news service he said: “We attracted more than 6.2 million foreign tourists in 2018, up 10.7% noting China was the biggest source market with nearly 2 million visits. (February  27, 2019 | TTR Weekly)

TOURISM | Cambodians Bit By Travel Bug

PHNOM PENH, 28 February 2019: Cambodians are travelling overseas more than ever before according to the latest assessment from the Ministry of Tourism. Claiming higher living standards and more low-cost airlines flying direct services to holiday destinations in the region, the ministry said outbound travel increased by 14% last year.  Ministry officials reported on travel trends at a media briefing on the sidelines of a campaign to honour the cleanest towns in the country earlier this week. (February  28, 2019 | TTR Weekly)

TOURISM | VN Tourism Co-Op To Draw Visitors

The Ministry of Tourism signed a tourism development cooperation agreement with Vietnam Airlines in Phnom Penh on Tuesday, witnessed by Prime Minister Hun Sen and Vietnamese President Nguyen Phu Trong, on a two-day visit to Cambodia. Some travel agents believe such cooperation between Cambodia and Vietnam will help the Kingdom attract more international tourists, and not only Vietnamese. Vietnam Airlines is considering opening routes connecting tourist hotspots Halong Bay and Danang to Siem Reap, Phnom Penh and Sihanoukville. (February  28, 2019 | Phnom Penh Post)

 

FINANCE AND BANKING | LOLC To Issue Cambodia’s Second Corporate Bond

LOLC (Cambodia) Plc., a leading microfinance deposit-taking institution in the Kingdom, plans to raise $20 million by issuing corporate bonds on the Cambodia Securities Exchange (CSX). LOLC will be only the second institution to issue corporate bonds in Cambodia, following in the footsteps of Hattha Kaksekar Limited (HKL), another microfinance institution (MFI) that issued Cambodia’s first corporate bond last year. (February 26 , 2019 | Khmer Times)

FINANCE AND BANKING | PRASAC Joins SME Finance Forum

PRASAC, a leading financial institution in Cambodia, has become the newest member of the SME Finance Forum, an organisation that works to expand access to finance for small and medium businesses. Established in 2012 by the G20 Global Partnership for Financial Inclusion, the SME Finance Forum is managed by the International Finance Corporation (IFC). It is a global membership network that brings together financial institutions, technology companies, and development finance institutions to share knowledge, spur innovation, and promote the growth of SMEs.(March 01 , 2019 | Khmer Times)

 

AGRICULTURE | ADB Project To Bolster Agriculture Industry

With most local agricultural exports consisting of raw materials, the Asian Development Bank (ADB) is now designing a multimillion project to increase the value of the agriculture industry. With a budget of $70 million – $2.17 million of which will be disbursed as a grant and the rest as a concessional loan – ADB’s Agricultural Value Chain Infrastructure Improvement Project seeks to help the Kingdom climb up regional value chains while increasing the quality of local produce, the development bank said in a report. (February25 , 2019 | Khmer Times)

 

AGRICULTURE | More Provinces To Issue Certificates Of Origin

Provincial authorities in Kratie, Stung Treng and Mondulkiri can now issue the ‘D form’ of the certificate of origin to agricultural producers and exporters. According to a recent government announcement, starting today traders and producers of agricultural products in the three northeastern provinces can apply for the form directly at their respective provincial commerce department, saving them a trip to the capital. (March 01 , 2019 | Khmer Times)

REAL ESTATE AND CONSTRUCTION| Capital Real Estate Follows Bangkok’s Lead

Cambodia is experiencing a miraculous period of growth. The real estate is growing but is still far from a mature market. Thailand, on the other hand, is a powerhouse market in Southeast Asia. Real estate there is considered more stable. The number of new projects and developments is, of course, greater. For the moment, investors still see Cambodia as a high risk, high reward location. Growth is faster than in Thailand, and the price for entry is comparatively low. But how else are these markets different? (February 27 , 2019 | Khmer Times)

 

CAMBODIA  Selected  Indicators

2013

2014

2015

2016f

2017f

2018f

 

Real GDP growth, at constant market prices

7.4

7.1

7.0

7.0

6.9

6.9

 

Private  Consumption

5.8

4.5

5.9

2.4

2.3

2.2

 

Government   Consumption

5.2

2.4

4.4

3.8

10.3

14.5

 

Gross Fixed Capital Investment

15.3

9.1

10.6

8.1

9.7

16.8

 

Exports, Goods and Services

14.0

11.3

7.2

9.5

8.1

8.3

 

Imports, Goods and Services

15.1

10.1

6.5

5.9

5.8

7.9

 

Real GDP growth, at constant factor prices

7.4

6.9

6.9

6.9

6.9

6.9

 

Agriculture

1.6

0.3

0.2

0.4

0.3

0.7

 

Industry

11.0

9.8

11.7

11.4

9.0

7.7

 

Services

8.7

8.7

7.1

6.8

8.5

9.1

 

Inflation (Consumer Price Index)

2.2

1.7

1.3

3.2

3.4

3.5

 

Current Account Balance (% of GDP)

-9.5

-9.0

-8.5

-8.4

-8.5

-8.7

 

Financial and Capital Account (% of GDP)

15.2

14.6

14.1

13.4

12.0

10.8

 

Net Foreign Direct Investment (% of GDP)

11.8

10.0

9.1

8.5

8.2

7.0

 

Fiscal Balance (% of GDP)

-6.5

-3.8

-2.0

-2.9

-4.9

-4.9

 

Debt (% of GDP)

31.6

31.8

32.1

32.6

33.3

34.0

 

Primary Balance (% of GDP)

-5.8

-3.1

-1.7

-2.5

-4.6

-4.6

 

Sources: World Bank, Macroeconomics and Fiscal Management Global Practice, and Poverty Global Practice.

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The report is produced based on material compiled from data considered to be reliable at the time of writing. Information and opinions expressed, however, will be subjected to adjusted at short notice. We do not accept any liability directly or indirectly that may arise from investment decision-making based on this report while we tend share as your information only.

 

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