Post by account_disabled on Jan 3, 2024 6:43:53 GMT
The CLMV economy is likely to continue expanding at around 6-7% in 2019 amidst the uncertainty of the global economy. Especially the trade war issue. However, foreign demand for CLMV countries remains good. Reflected by the value of exports Investment funds from abroad and the tourism sector that is still growing well In the first two months of 2019, CLMV's total exports expanded 5%YOY, especially to countries with free trade agreements and developed countries that provide preferential treatment. At the same time, the government sector has continued to invest in improving the business environment. Both from the development of infrastructure and the promotion of new industries.
In addition, the recent economic C Level Executive List growth has resulted in the middle class continuing to expand. This will continue to support the household consumption sector. However, the main risks to the CLMV economy in the future are increasing, namely the slowdown of the Chinese economy. Persistent current account deficit and country-specific risk factors include the revocation of the EBA from the European Union for Cambodia and Myanmar. Economic vulnerability to external risks, especially in Laos and Myanmar and the rapid growth of credit in Vietnam which may create bad debt for the country The Cambodian economy will expand at a slower rate of 6.8% in 2019. Exports will continue to grow well.
Especially exporting to the United States. and China under preferential trade privileges. At the same time, Cambodia can also attract FDI from manufacturers who want to avoid the impact of the trade war. In addition, the tourism sector will be an important new economic driver going forward. The risk going forward is the loss of EBA benefits from the EU in 2020. The Lao economy will continue to grow at around 6.7% in 2019, with the construction sector electricity export and tourism is the main driving factor. The main challenge of the Lao economy is its economic stability, which is still fragile from external risks.
In addition, the recent economic C Level Executive List growth has resulted in the middle class continuing to expand. This will continue to support the household consumption sector. However, the main risks to the CLMV economy in the future are increasing, namely the slowdown of the Chinese economy. Persistent current account deficit and country-specific risk factors include the revocation of the EBA from the European Union for Cambodia and Myanmar. Economic vulnerability to external risks, especially in Laos and Myanmar and the rapid growth of credit in Vietnam which may create bad debt for the country The Cambodian economy will expand at a slower rate of 6.8% in 2019. Exports will continue to grow well.
Especially exporting to the United States. and China under preferential trade privileges. At the same time, Cambodia can also attract FDI from manufacturers who want to avoid the impact of the trade war. In addition, the tourism sector will be an important new economic driver going forward. The risk going forward is the loss of EBA benefits from the EU in 2020. The Lao economy will continue to grow at around 6.7% in 2019, with the construction sector electricity export and tourism is the main driving factor. The main challenge of the Lao economy is its economic stability, which is still fragile from external risks.
