Cambodia defies the debt trap and keeps growing at a steady pace
A.I Consulting co, ltd
Connecting Businesses, Creating Investment Opportunities in Cambodia and ASEAN countries.
Despite major challenges like the potential for a recession, the arrival of 2023 isn't all bad news, in particularly for Cambodia.
Find out why the global economic outlook isn't as dire as it seems.
IMF has warned recently than many low-income countries are in – or at high risk of – “debt stress” as the Ukraine conflict and other crises prolong, requiring policy adjustments and precautionary measures to ensure fiscal space and to fortify financial stability.
Hopefully , at a level of Public Debt to GDP of 36,8% end of 2022, Cambodia rate is lower than that of all but one ASEAN country, Brunei, making the country less vulnerable than other low-to-middle income countries in the world to a debt stress.
The Cambodian government's proactive approach to reducing external borrowing (despite 40% China debt), increasing tax revenue, and improving public financial management, ?has stabilized debt levels and attracted foreign direct investment, supporting the country's growth (+5% in 2022), and maintaining a healthy economy.
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Furthermore, the Cambodian government’s focus on economic development and infrastructure projects is aiming to increase ?foreign direct investment, which will further folster the ?country’s growth (GDP 2023 IMF estimation + 6,2%) ?and reduce its reliance on debt.
In this time of global economic uncertainty, AI Consulting is the single point of contact for foreign investors willing to diversify and make grow their wealth, ?and for corporates willing to grow their business, ?in one of the most fast-growing countries of the world, Cambodia.
Why Cambodia?