PHNOM PENH, June 17 (Xinhua) -- Cambodia's economy is projected to grow 4 percent in 2021 after contracting 3.1 percent in 2020, said the World Bank's latest report released on Thursday.
While some sectors have seen economic gains, others continue to be stifled by the ongoing pandemic, it said.
"Agriculture has been relatively resilient, due to strong demand that has been boosted in part by the newly signed Cambodia-China Free Trade Agreement," the report said.
The manufacturing sector has gradually recovered by adapting to changing external conditions, and wholesale and retail businesses have also experienced a slow recovery, supported by a gradual revival in domestic economic activity, it said.
On the other hand, parts of the services sector such as accommodation, restaurants, and transport continue to be hit hard by the slowdown in domestic and international tourism, the report said, adding that foreign direct investment inflows remain resilient and are helping sustain the external sector.
The report recommends that Cambodia take immediate steps to shore up market confidence by urgently accelerating its vaccination program, while simultaneously continuing to take measures to contain infections.
Like many countries in the region, Cambodia has been hit hard by the global demand shock brought on by COVID-19, said Inguna Dobraja, World Bank country manager for Cambodia.
"But the good news is that Cambodia has now vaccinated more than 3 million people, one of the highest rates in the region," she said.