Political stability propelled economic growth, says Hun Sen
Political stability propelled economic growth, says Hun Sen
Cambodia’s remarkable achievements in restoring, building and developing the economy and society were due to decades-long peace and strong political stability that existed in the Kingdom, said Hun Sen, President of the ruling Cambodian People’s Party, yesterday.
Addressing the commemoration of the 46th Victory Day at Koh Pich, Mr Hun Sen termed peace and political stability as the foundation of Cambodia’s economic growth.
Prime Minister Hun Manet and Heng Samrin, Honorary President of the Cambodian People’s Party (CPP) among other distinguished dignitaries were present on the occasion.
Cambodia which started from zero has scored remarkable achievements in restoring, building and developing the economy and society, reducing the poverty of the people to below 10 percent before being hit by the Covid-19 crisis, he said.
Giving complete credit to peace and political stability in the country, Mr Hun Sen, who is also the Senate President, said, “Under the shade of peace, the country has transformed from a country with a severe deficit in state revenue and relianc on development partners for financing to becoming a country with the ability to manage its national budget responsibility, with reserves to ensure economic stability and well-being of people as well as withstand crises and disasters.
“The national economy has achieved growth of around 6 percent, the exchange rate is stable, inflation is at a low and manageable level, and the employment situation and people’s livelihood are also stable,” he said.
Cambodia’s economy mainly depends on garment, footwear and travel goods exports, construction and real estate, tourism and agriculture.
According to a report from the General Department of Customs and Excise of Cambodia, the Kingdom exported goods worth approximately $23.93 billion during the first eleven months of 2024, up 16.8 percent from $20.49 billion recorded in the same period last year.
Cambodia’s main export products include garments, machinery, electrical equipment, footwear products, leather goods, grain, furniture, rubber, fruits, vegetables, pearls, toys and textiles.
The World Bank’s ‘Cambodia Economic Update: From Recovery to Resilience: Harnessing Tourism and Trade as Drivers of Growth’, released on December 12, 2024, says Cambodia’s economic growth is projected to reach 5.3 percent this year, up from 5 percent in 2023, driven mainly by trade. A surge in manufacturing exports, combined with a partial recovery in tourism and continued foreign investment, helped sustain economic activity.
“Cambodia can further boost its growth by diversifying trade and improving productivity,” said Tania Meyer, World Bank Country Manager for Cambodia.
“Investing in human capital, in particular education and deepening reforms to improve the business environment will be key to enable the private sector to create more and better jobs,” Meyer added.
The Royal Government is fulfilling its noble mission with a strong determination to accelerate socio-economic development and promote the implementation of deeper and broader reforms towards achieving the vision of becoming an upper-middle-income country by 2030 and a high-income country by 2050.
The Cambodia Chamber of Commerce (CCC) expressed support for the government’s emphasis on peace and political stability, citing that businessmen and investors are confident in the investment environment of Cambodia.
Speaking to Khmer Times, CCC’s Vice President Lim Heng said, “Peace and political stability are absolutely imperative for economic growth. They build confidence in investors.”
Additionally, the government’s proactive measures for addressing the challenges of the private sector coupled with the new investment law, free trade pacts and trade preference schemes are also factors making the country a potential target for investment, he added.
