23-11-2023 (PHNOM PENH) Cambodia’s Prime Minister Hun Manet announced on Thursday that the country’s economic growth prediction for 2023 would remain at 5.6 percent, while it has been raised to 6.6 percent for 2024.
The Southeast Asian nation’s economy relies heavily on exports of garments, footwear, and travel goods, as well as the tourism, agriculture, real estate, and construction sectors.
During his opening speech at the 2023 Cambodia Outlook Conference, Prime Minister Hun Manet stated, “With its robust growth and diversification, Cambodia has set ambitious goals of attaining upper middle-income country status by 2030 and becoming an advanced economy by 2050.”
Hun Manet also highlighted that the kingdom is projected to transition from a least developed country status by 2027.
Furthermore, Cambodia has been actively expanding its export markets, particularly in the ASEAN+3 countries (China, Japan, and South Korea), as it gradually reduces its heavy reliance on the United States and European markets.
The World Bank, in its semi-annual outlook for Cambodia released on Wednesday, stated that despite external and domestic challenges, the country’s growth remained strong.
The lender anticipates a real GDP growth rate of 5.4 percent for 2023, which is expected to increase to 5.8 percent in 2024. This growth is driven by anticipated infrastructure investments and the benefits derived from regional free trade agreements.
Currently, Cambodia is a member of the China-ASEAN Free Trade Area agreement and the Regional Comprehensive Economic Partnership (RCEP) agreement. Additionally, the kingdom has bilateral free trade agreements in place with China, South Korea, and the United Arab Emirates.
The World Bank cautioned that future economic growth could be impacted by weakening global demand or unexpected oil and food price shocks. Domestically, rising household debt and credit in the real estate sector pose risks to Cambodia’s economic stability.
