Cambodia’s 2023 GDP Growth Forecast at 6%; Construction at 1.7%

• 11 January 2023
• Local News
• 4825 Views

Cambodia’s economic growth in 2023 is forecast at 6% despite high external challenges, according to a recent National Bank of Cambodia (NBC) report. 

The growth was largely supported by the rise of construction and real estate sectors, which are expected to continue to recover gradually at 1.7% and 1.2%, respectively due to the growing domestic demand and the trend of the affordable real estate market. 

However, high-priced construction will take more time to be able to return to pre-crisis conditions. 

The report added that the garment sector will grow at a 6.9% rate while non-garment manufacturing at 14.3%. 

The tourism sector is expected to grow by 18.5% due to the growth of domestic tourists and the rapid growth of international tourists with the continuous increase in flight connections to Cambodia. After the Chinese government eases travel restrictions, Chinese tourists are also expected to increase. 

The agricultural sector is projected to grow 1.1%,  higher than in 2022, due to the Comprehensive Economic Partnership Agreement (RCEP) and the Bilateral Free Trade Agreement, as well as the removal of tariff barriers to the European market. 

• Economy and Finance