Phnom Penh (FN), Feb. 1 – Cambodian Prime Minister Hun Sen on Monday said that Cambodia's economy expects to grow by 4% in 2021. He called on everyone to join hands to prevent COVID19.

“The economy was projected to contract by 1.9 per cent in 2020, but the latest assessment of the Royal Government indicated 3.1 per cent down,” the premier said, adding that "We expected our economy to bounce back and grow by 4 percent in 2021.”

World Bank’s latest economic update for Cambodia, published on 16 January 2021, said the Kingdom’s economy is projected to contract by 2 percent in 2020, but is expected to bounce back and grow by 4 percent in 2021.

FDI inflows to projects in non-garment industries and agriculture have been rising, likely attracted by Free Trade Agreements, according to the report.

For quick recovery from the pandemic, the report recommends boosting pro-poor and growth-enhancing public investment including cash-for-work projects, while promoting labor-intensive sectors to generate jobs by taking advantage of the quick recovery of domestic demand for consumer goods. It also notes the opportunities to facilitate an expansion of domestic and foreign investment arising from recent bilateral and regional free trade agreements, including the Cambodia-China Free Trade Agreement and Regional Comprehensive Economic Partnership (RCEP).