WEEKLY ECONOMIC UPDATED
Updated:​ ​09-15 February, 2019

 

TRADE & COMMERCE | EU Starts Intensive Monitoring Of Cambodia

The European Union yesterday started the process of intense monitoring and engagement for six months that could lead to the temporary suspension of Cambodia’s preferential access to the market under the Everything-but-arms (EBA) trade scheme, it said in a statement. The launching of the temporary withdrawal procedure does not entail an immediate removal of tariff preferences, which, according to the statement, is the option of last resort. (Febuary 12 , 2019 | Khmer Times)

TRADE & COMMERCE | Ministry And German Aid Agency Launch SME Programme

The Ministry of Industry and Handicrafts and GIZ on Monday launched the Micro, Small and Medium Enterprises (MSME) Development Programme, a project that aims to improve management, production and quality standards among local enterprises. At the launch, the parties also signed an implementation agreement for the programme. The ceremony, held at the Phnom Penh Water Supply Authority, was presided over by Son Seng Huot, under-secretary of state at the Ministry of Industry, and GIZ country director Dr Gunter Riethmacher. (Febuary 13 , 2019 | Khmer Times)

 

TRADE & COMMERCE | Direct Flight With Indonesia A Boon For Relations: PM

Prime Minister Hun Sen yesterday said the launch of the first direct flight between Cambodia and Indonesia will spur growth in tourism, trade and investment between the two Asean member states. Indonesia and Brunei are the only Asean members that lack a direct air link with the Kingdom, but Indonesian airline Citilink recently announced its intention to fly directly to Cambodia. (February 15, 2019 | Khmer Times)

 

 

FINANCE AND BANKING | Local Businesses Embrace Fintech

It is lunchtime at a coffee shop in Kandal province’s Takhmao city. Customers enjoy a cuppa while chatting effusively with friends. Behind the counter, Sokun Thoeun, the owner, checks their payments on his smartphone. Mr Thoeun and his wife, both in his thirties, have been in the coffee shop business for nearly a year, and, since opening, customers have only increased. Despite never having studied business management or finance, Mr Thoeun, with guidance from bank officials, has already mastered the apps he uses to manage customers’ payments. (Febuary 11 , 2019 | Khmer Times)

 

 

FINANCE AND BANKING | RDB Gives $170m In Loans Amid Weak Commercial Lending

The Rural Development Bank disbursed more than $170 million in loans to the agriculture industry last year, with nearly 70 percent of the money going to the rice sector, an RDB official said. Kao Thach, RDB’s CEO, told Khmer Times that last year the bank gave loans to more than 40 local rice millers and exporters. All of the loans will be repaid this year, he said. Money disbursed through the government-led emergency fund, around $50 million, will be paid back by May, while the rest of the loans will likely be fully repaid by June or July, Mr Thach said. (Febuary 11 , 2019 | Khmer Times)

FINANCE AND BANKING | Sacombank Customers To Benefit From Mobile Payments

Customers of Sacombank Cambodia will soon have access to Ly Hour Pay Pro’s mobile payment services to withdraw, transfer funds and pay loans. Ly Hour Pay Pro, a subsidiary of local conglomerate Ly Hour Group, on Tuesday signed a partnership agreement with Vietnam-owned Sacombank Cambodia to allow bank customers to withdraw and transfer funds, as well as pay loans, using Ly Hour Pay Pro’s network of 4,500 agents and branches nationwide. (February 13 , 2019 | Khmer Times)

FINANCE AND BANKING | ABA Plans Expansion

ABA Bank, a member of the National Bank of Canada Group, plans to open another 11 branches nationwide in response to the rising number of customers. Mey Polin, ABA business development manager, unveiled the expansion plans yesterday. “Our business is growing more than 30 percent a year so we are expanding to give our customers a better and more convenient service. (February 14 , 2019 | Khmer Times)

AGRICULTURE | Cambodia And Vietnam Agree To Drop Import Duties

Trade ties between Cambodia and Vietnam were strengthened on Wednesday following a meeting between high-ranking commerce officials in which both countries agree to drop tariffs on a number of goods. Vietnam also agreed to expand its quota of Cambodian rice to 300,000 tonnes and tobacco leaves to 3,000 tonnes. These are the most significant points agreed upon at Wednesday’s meeting, which was presided over by Cambodian Commerce Minister Pan Sorasak and Do Quoc Hung, representative of the Vietnamese Ministry of Industry and Trade. (Febuary 15 , 2019 | Khmer Times)

 

REAL ESTATE AND CONSTRUCTION | Expo Highlights Laos’ Real Estate Progress

Laorealestate.la has partnered with both the Lao National Chamber of Commerce and Industry (LNCCI) and Yula.la to host the first ever real estate expo in Laos. Taking place at Vientiane’s Don Chan Palace Hotel on March 1 and 2, the Lao Real Estate Expo 2019 is free for all guests. It marks a turning point in the property sector of the country. All of Laos’ leading names are set to attend. (Febuary 13, 2019 | Khmer Times)

REAL ESTATE AND CONSTRUCTION| Construction Of Twin Building Project Begins

OTK Royal One, a subsidiary of local conglomerate Royal Group, started construction yesterday of Royal One, a twin-building project with an investment capital of $230 million. The buildings, each one to reach 68 storeys high, are located in prime real estate in the corner of Russian Boulevard and Monivong Boulevard, and will include condominiums, shopping malls, fitness centres and restaurants. (Febuary 15 , 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.

DISCLAIMER

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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