World Bank forecasts Cambodia’s economic growth at 5.8 percent in 2024 driving by goods exports and service boosting the economic activities.
In its Cambodia’s Economic Update issued on June 6, World Bank said Cambodia’s economic activity picked up in the first quarter of 2024, driven by a revival of services and goods exports, despite subdued domestic demand.
‘To sustain economic growth, Cambodia needs to maintain macro-financial stability by restoring fiscal space and safeguarding its financial sector,’ World Bank Country Manager for Cambodia Mrs. Maryam Salim said.
‘Cambodia can also strengthen competitiveness by improving the business climate, streamlining trade procedures at borders, making the energy supply more reliable, and strengthening education,” she added.
International tourist arrivals continued to improve in the first quarter to 84 percent of pre-pandemic levels, the report said, adding that exports of garments, travel goods, and footwear rebounded, while non-garment exports, especially thos
e of agricultural commodities, remained resilient.
The Association of South East Asian Nations (ASEAN) region has emerged as Cambodia’s second-largest export market after the United States, it said, adding that rising foreign investment in manufacturing and agriculture also contributed to the recovery.
The report said inflation declined to zero in March as food prices decelerated, while the current account recorded an unprecedented surplus in 2023 as the trade deficit narrowed and tourism receipts rose.
Construction activity remains subdued, however, as the property market correction continues. As a result, domestic credit growth has slowed significantly, weighing on private consumption and domestic revenue collection, read the report.
Cambodia’s economic growth should further strengthen by 6.1 percent in 2025 and 6.4 percent in 2026 as revival in garment, travel goods, and footwear exports and tourism propel the ongoing recovery, the report said.
Source: Agence Kampuchea Presse
