UK trade down 10% amid global economic tensions
UK trade down 10% amid global economic tensions
Amid global economic uncertainty, bilateral trade between Cambodia and the UK reached over $870 million in 2023, marking a decline of more than 10% compared to 2022, as reported by the General Department of Customs and Excise (GDCE).
GDCE's data indicate that trade between the two kingdoms amounted to $872.96 million in 2023, representing a 10.7% decrease from $977.44 million in 2022.
Cambodian exports to the UK were valued at $796.38 million, a 10.2% reduction. Imports from the UK stood at $76.58 million, a 15.9% decrease.
The trade surplus for Cambodia expanded to $719.81 million, compared to $795.41 million in 2022.
The UK currently ranks as the country’s 10th-largest trading partner, following China, the US, Vietnam, Thailand, Japan, Indonesia, Germany, Singapore and Canada.
Hong Vanak, director of International Economics at the Royal Academy of Cambodia, explained to The Post on January 22 that the decline in trade volume could be attributed to two main factors: the uncertainty of global economic growth leading to reduced consumer spending and the surplus of goods ordered by the UK from Cambodia in 2022 remaining in stock.
He predicts that in 2024, trade flow between the countries, particularly Cambodia's exports, will surpass that of 2023.
Vanak noted that the UK, as a developed country with a growing industrial sector, primarily imports textiles and agricultural products from Cambodia.
"Last year's release of stockpiles and the preferential tariff system offered by the UK to Cambodia for some products will aid in boosting Cambodian exports to the UK beyond last year's levels," he said.
He added that due to the UK's connections with Europe, some Cambodian exports to the UK also find their way into the European market.
Ly Khun Thai, president of the Cambodia Footwear Association (CFA), attributed the downturn in exports and imports between the two countries to global geopolitical and economic conflicts, as well as the impact of wars in certain nations.
He acknowledged the decline in the export of clothing, footwear and travel bags to the UK which contributed to the reduced trade volume.
“The decline is reflective of the global crisis, yet Cambodia's production strength is continually advancing. We have witnessed a series of investment projects in Cambodia,” Khun Thai said.
"For 2024, I am optimistic that Cambodia's exports to international markets, including the UK, will show positive growth in almost all categories," he added.
Cambodia's exports to the UK currently encompass clothing, footwear, bags, bicycles and agricultural products. Imports from the UK include automobiles, machinery, electrical equipment and electronic components, according to the GDCE.
