Prime Minister Samdech Akka Moha Sena Padei Techo Hun Sen has repeatedly reminded the negative impact of ongoing Russia-Ukraine war.

At a get-together with some 19,000 workers and employees from 13 factories and enterprises in Phnom Penh capital city and Kandal province, held at Morodok Techo National Stadium in Khan Chroy Changvar, Phnom Penh this morning, Samdech Techo Hun Sen said as long as the Russia-Ukraine war does not end, the world economy will continue to face difficulties.

“As the war continues, the world economy still be impacted negatively, and everyone, whether Europe or even Cambodia, will be affected,” he underlined.

As European markets have reduced purchase order from Cambodia, the Royal Government is diversifying its export market to Japan, United Arab Emirates … to ensure markets for the Cambodian products, he added.

According to the International Monetary Fund (IMF), amid financial sector turmoil, high inflation, ongoing effects of Russia’s invasion of Ukraine, and three years of COVID, the baseline of world economic forecast for growth to fall from 3.4 percent in 2022 to 2.8 percent in 2023, before settling at 3.0 percent in 2024.

Advanced economies are expected to see an especially pronounced growth slowdown, from 2.7 percent in 2022 to 1.3 percent in 2023.

In a plausible alternative scenario with further financial sector stress, global growth declines to about 2.5 percent in 2023 with advanced economy growth falling below 1 percent.

Global headline inflation in the baseline is set to fall from 8.7 percent in 2022 to 7.0 percent in 2023 on the back of lower commodity prices but underlying (core) inflation is likely to decline more slowly. Inflation’s return to target is unlikely before 2025 in most cases.

The Russia-Ukraine war began on Feb. 24, 2022 when Russia invaded and occupied parts of Ukraine’s territory.

Source: Agence Kampuchea Presse