World Bank Confirms Cambodia’s Robust Growth Projections: 5.5% for 2023, 6.1% for 2024

• 10 October 2023
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The World Bank has reasserted its growth predictions for Cambodia, maintaining a forecast of 5.5% for 2023 and raising it to 6.1% for 2024, according to the latest East Asia and Pacific Economic Update on 9 October 2023.

The report affirms that Cambodia’s economic prosperity is propelled by key sectors such as garment exports, tourism, agriculture, construction, and real estate.

The tourism and hospitality sectors are set to surge, with an anticipated rise in international arrivals.

Trade and Investment Momentum: Exports and foreign direct investment (FDI) are expected to strengthen further due to ratified free trade agreements, increased private and public investments in critical infrastructure, and comprehensive structural and sectoral reforms.

The economy is projected to further improve in 2024, growing at a rate of 6.1%. This expansion will be fuelled by enhanced goods exports, gradual diversification, and an uptick in foreign direct investment flows, partly catalysed by the new Law on Investment.

Looking ahead, Cambodia’s economy is anticipated to trend back to its potential, achieving a growth rate of 7 over the medium term.

On 20 September 2023, the Asian Development Bank (ADB) lowered its forecast for Cambodia’s economic growth in 2023 slightly from the beginning of the year, from 5.5% to 5.3%. This reaffirms Cambodia’s economic resilience and attractiveness to investors. (Read more)

• Economy and Finance