Asia-Pacific economies to bounce back in 2022: Moody's Analytics

Uncertainties remain due to the continued impact of the Coronavirus pandemic but Covid-related volatility will diminish over time, according to chief APAC Economist Steve Cochrane.

“The  pattern of rapid rise and an equally rapid fall of Omicron’s wave elsewhere illustrates that any impact in APAC will also be of shorter duration and less severity than the Delta wave of last year’s third quarter. So far steep surges of Covid-19 cases driven by the Omicron wave are evident in Australia and the Philippines,” Cochrane was quoted as saying by a Cambodian media report.

“The economic outlook for Cambodia is positive as the pandemic situation remains favourable. Despite the Omicron variant and a gradual reopening of its economy, the rate of daily new infections in the nation remains one of the lowest in the region. It is also commendable that Cambodia’s fully vaccinated rate has consistently been the highest in the Asia-Pacific region. The nation is in an advantageous position for future virus waves as it recently started implementing its fourth dose of vaccination,” Cochrane said.

“Consumption and retail spending will recover stronger in 2022 and 2023 from tourism growth, as the nation has reopened its international borders to fully vaccinated travellers since November last year,” he said.

“Given that the average GDP growth rate in the past decade before the pandemic struck has been trending at around 7 per cent, a GDP growth rate near 6 per cent this year is achievable as tourism spending gradually improves.”

Cambodia’s export growth will also rebound strongly in the near term, Cochrane said, helped by sustained demand from China for the country’s agriculture exports.

Fibre2Fashion News Desk (DS)