Cambodia earned approximately $1.4 billion from the export of electrical machinery, equipment and parts to international markets during the first eight months of 2024, a decrease of one-third compared to the same period in 2023. Some economists attribute the decline to weak global economic growth.

According to the General Department of Customs and Excise (GDCE), from January to August, exports categorised under Harmonised System (HS) Code 85, which includes the aforementioned products, totalled $1.410 billion, a decrease of 34.8% compared to $2.162 billion in the same period of 2023, and accounting for 8% of the country’s total export earnings of $17.58 billion year-on-year.

In August alone, export revenue from Code 85 products amounted to $226.17 million, down 25.3% from $302.88 million in August 2023.

Speaking to The Post on October 4, Hong Vanak, an economist at the Royal Academy of Cambodia, explained that the decline in these exports could be due to two main factors: the weak global economic growth affecting some production cycles and the significant export growth in 2023.

He added that exports are expected to recover as the global economy gains momentum, with consumer demand and spending rising as economic conditions improve.

“Geopolitical conflicts and wars in some countries have caused consumers to reduce spending on certain non-essential items such as electrical appliances. When the global economy improves, orders for such equipment will surge again,” he said.

To enhance relationships, expand promotion and attract more foreign investors – especially from North America – and increase orders for Cambodian products, delegations from Cambodia’s government and private sector recently visited the US and Canada from late September to early October.

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Author: Hin Pisei

Publication date: 04 October 2024

Source: The Phnom Penh Post