Resilient Development - A Strategy to Diversify Cambodia’s Growth Model : Cambodia Country Economic Memorandum
The devastating impact of the Covid-19 pandemic on the Cambodian economy—where the growth slowdown was among the most pronounced in the East Asia and Pacific (EAP) region—lies in the country’s growth generating process. Recent growth has been remar...
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| Format: | Report |
| Language: | English |
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World Bank, Phnom Penh
2022
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| Online Access: | http://documents.worldbank.org/curated/en/099925001262213662/P1719580f183f60bb0ac1e01e64a9c905ea http://hdl.handle.net/10986/36908 |
| Summary: | The devastating impact of the
Covid-19 pandemic on the Cambodian economy—where the growth
slowdown was among the most pronounced in the East Asia and
Pacific (EAP) region—lies in the country’s growth generating
process. Recent growth has been remarkable, but
insufficiently diversified in products, markets, and factor
inputs. The diversification problem is rooted in low and
declining productivity; low quality and weak export
linkages; and high foreign direct investment (FDI) but low
domestic investment. Just when past success was fueling high
ambitions for future growth—to become upper middle income by
2030 and high income by 2050—the pandemic threatens to put
those targets out of reach. Cambodia’s policymakers have the
opportunity to build a new and stronger growth path—by
enabling productivity of firms and workers, diversifying
exports, and harnessing domestic investment. But an
ambitious reform agenda is needed—one that focuses on
improving capabilities, strengthening regulations, and
investing in infrastructure. |
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