11-6-2023 (PHNOM PENH) Prime Minister Samdech Techo Hun Sen announced on Sunday that Cambodia is projected to achieve a growth rate of 5.6% in 2023, an increase from the 5.2% growth recorded in 2022.
Hun Sen attributed this positive outlook to the country’s ability to maintain peace and effectively control the COVID-19 pandemic, which has laid a solid foundation for economic recovery.
During a gathering with nearly 20,000 garment factory workers, the Prime Minister emphasized the significance of safeguarding peace, stating that it serves as a crucial prerequisite for national development.
According to the World Bank’s May economic update, Cambodia’s economy has remained resilient, driven by strong consumer demand, agricultural activities, and the return of foreign tourists, particularly from China, following its reopening earlier this year.
The growth has also been supported by various trade agreements such as the Regional Comprehensive Economic Partnership (RCEP), the Cambodia-China Free Trade Agreement, and the Cambodia-Republic of Korea Free Trade Agreement, as highlighted by the World Bank.
Cambodia’s economy heavily relies on sectors such as garment exports, tourism, agriculture, and real estate and construction.
In its recent World Economic Outlook, the International Monetary Fund (IMF) identified Cambodia as one of the three most robust economies within the RCEP framework for 2023, alongside the Philippines and Vietnam.
With a favorable economic trajectory, Cambodia is poised to continue its recovery and capitalize on the opportunities presented by regional trade agreements, ultimately contributing to the country’s overall development.
