Mekong Memo Cambodia 20230925

Mekong Memo Cambodia Weekly, September 25, 2023: Business, politics, finance, trade & legal news.

We monitor and filter the very best and most insightful stories from Southeast Asia directly to your inbox every week.

By reviewing a wide variety of media including legal, financial and other relevant industries along with government and NGO sources, we are able to sift through the noise and bring you only what we believe to be relevant to an informed observer of Cambodia business news.

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Here is your Mekong Memo Cambodia for the week of September 25, 2023.

Headlines:

ADB Tweaks Economic Growth Predictions

FDI Soars, Defying Global Financial Challenges

Hurdles Loom for Economic Recovery

The Dynamo Behind Cambodia’s Digital Surge

Tourism Gets a Lift With More Direct Flights

NBC Maintains Stabilized Exchange Rates

Aging Cambodia: A 2050 Forecast

New Steel Factory Uplifts Construction Landscape

Digital Payment Adoption Soars

USAID’s Golden Ticket for Agribusiness

Guides Urge Visa Chances and Better Services

MOH: In Talks for Health Sector Alliance

Big Cuts to Electric Tariffs Announced

AirAsia Cambodia Takes Flight in November

Artist's Leap from Poverty to Global Circus Stage

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ADB Tweaks Economic Growth Predictions

The Asian Development Bank (ADB) has revised Cambodia's GDP growth projection for 2023 down to 5.3% from 5.5%. This adjustment comes in light of an 18.6% drop in exports of garments, footwear, and travel goods in the first half of the year. However, a 22.9% increase in other manufactures exports, such as vehicle parts and solar panels, partly counteracted this decline. Despite challenges in the agricultural sector, the service sector, particularly tourism, has shown robust recovery, exceeding expectations. The report also highlighted a threefold rise in gold exports and a 4.1% increase in foreign direct investment.

Read more: Khmer Times

FDI Soars, Defying Global Financial Challenges

Despite a global financial downturn, Cambodia witnessed a 41.6% surge in foreign direct investment (FDI) in the first half of 2023, a significant leap from the 0.4% increase in 2022. This growth is expected to boost the agricultural sector by 0.9% and the hotel and restaurant sub-sectors by 41.5%. Notably, the non-garment manufacturing sub-sector, driven by solar panel exports to the US, saw investment rise by 172%. Factors such as strategic geographical location, investment law reforms, and beneficial trade agreements position Cambodia as an attractive investment hub.

Read more: Phnom Penh Post

Hurdles Loom for Economic Recovery

The ASEAN+3 Macroeconomic Research Office (AMRO) cautions that Cambodia's economic resurgence is at risk from external challenges, including China's slowing growth and a prolonged downturn in Cambodia's real estate sector. While AMRO predicts a GDP growth of 5.3% for 2023, it highlights potential threats such as global oil and food price surges and domestic real estate challenges. Despite these concerns, robust tourism recovery and strong domestic consumption are positive indicators. AMRO emphasizes the need for fiscal and structural reforms to bolster long-term growth.

Read more: KiriPost