Cambodia's 2022 GDP growth will expand to 6.3%: S&P

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Cambodia’s gross domestic product (GDP) will expand to 6.3 per cent this year, higher than projections made by the World Bank, the International Monetary Fund and the Asian Development Bank, according to forecasts by global rating agency S&P, which expects credit growth in Cambodia's private sector to continue averaging a brisk 20 per cent annually for the next 12-18 months.

 

Economic recovery is under way in the country, S&P’s report Global Banking Outlook Midyear 2022 stated.

The international institutions predicted GDP growth in the country to be around 4.5 per cent to six per cent, due to rising global prices of oil and other commodities.

 

The ratio of private sector debt to GDP will exceed 160 per cent in the country. S&P believes the microfinance sector, which accounts for 13 per cent of system-wide loans, is elevated, reflecting inherently higher credit risks and more aggressive lending practices. “…Cambodia’s long-term growth story remains intact, given its competitive cost structure and young population, making it one of the fastest-growing economies in the world,” said S&P primary credit analyst Ivan Tan.

 

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