![\"\"](\"https:\/\/capitalcambodia.com\/wp-content\/uploads\/2020\/02\/sihanoukville-building-site.jpg\")
He said events of the last two months in the global economy will affect the Kingdom\u2019s economy in 2020 and the country faces challenges.<\/p>\n
\u201cThe slowdown of the global economy, geo-politics, the Middle East, climate change, Wuhan\u2019s Coronavirus in China \u2013 it affects the tourism sector. When the tourism sector slows down, it brings the other sectors down such as logistics, accommodation, food, as well as the construction sector,\u201d he said.<\/p>\n
\u201cAlthough there are internal and external shocks, if we implement the macro policy effectively, we forecast the country\u2019s GDP growth will be 6.1 percent in 2020,\u201d Vongsey added.<\/p>\n
\u201cWe have strong fundamentals and we have resources including government savings, strong foreign reserves, good public financial management.<\/p>\n
\u201cIf we act efficiently, we will not drop fast. Att least we should have around 6.1 percent of GDP growth.\u201d<\/p>\n
He added that Cambodia might be affected by a drop of 20 percent in the garment sector among total export value to the EU and 30 percent in the shoe industry. The construction sector is also declining and the tourism sector is expected to drop this year.<\/p>\n
\u201cHowever, our economy will not collapse,\u201d he insisted.<\/p>\n
\u201cOur economic growth will slow down in some sectors, but it will also increase in some sectors. Therefore, we are not much concerned over these issues,\u201d Vongsey stressed.<\/p>\n
The Secretary of State said last year Cambodian exports to the EU dropped to around 10 percent of the total, but exports to the US increased to 30 percent.<\/p>\n
The non-industrial sector is also increasing to 12 percent per year. That includes assembly, motors, electronics and solar panels, so Vongsey said the nation is starting to diversify export products fast. He noted garment exports grew 5 percent.<\/p>\n
\u201cWe have already prepared a fiscal policy to cope with uncertainty and continue the implementation of the government\u2019s policies and to enforce them more firmly to prevent shocks or crises.<\/p>\n
\u201cWe want to transform the shocks or threats or other crises into opportunities and reform the economy and implement effectively the government\u2019s policies,\u201d Vongsey said.<\/p>\n
\u201cWe have to strengthen public work. The state must be strong, transparent and wise,\u201d he added. \u201cWe need a strong public administrative government: plans, strategy and implementation. Quality and ability, good communication by civil servants, clarity of role and duty are also important.<\/p>\n
\u201cWe must provide public service efficiently,\u201d Vongsey pointed out.<\/p>\n
\u201cThere is big pressure, high risk both internally [from the Everything but Arms (EBA) deal outcome and also externally in 2020.<\/p>\n
\u201cHowever, Cambodia has strong fundamentals. We have a package of reserves. We have policies to implement. We will do this together in the right way and efficiently,\u201d Vongsey concluded.<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Emphasis based on infrastructure, human resources development and good governance<\/p>\n","protected":false},"author":3,"featured_media":3674,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_FSMCFIC_featured_image_caption":"An image showing the road improvement project. Supplied","_FSMCFIC_featured_image_nocaption":null,"_FSMCFIC_featured_image_hide":null,"footnotes":""},"categories":[23],"tags":[147,439],"yoast_head":"\n