ADB forecasts 5.5% economic growth in Cambodia in 2023

Recently, the Asian Development Bank (ADB) released a report stating that based on the strong recovery of the tourism industry and the high growth of the service industry, Cambodia's economic growth rate is expected to be 5.5% in 2023 and 6% in 2024.

"Despite weak global demand, driven by the tourism industry, the Cambodian economy still perform well in 2022. In 2023, Cambodia's current account deficit will narrow, inflation will be moderate, the economic outlook will be optimistic, and growth will be strong." Representative of the Asian Development Bank in Cambodia，Ms.Jyotsana Varma said.

According to the "2023 Asian Development Outlook Report" (ADO), Cambodia's tourism industry is expected to grow by 7.3% in 2023. Driven by export crops, the agricultural sector is expected to grow by 1.1% in 2023 and 1.2% in 2024, while the industrial sector is expected to grow by 5.8% and jumping to 7.8% in 2024.

However, Cambodia's garment, footwear and tourism export growth will slow in 2023 due to weak external demand in the US and Europe, which are the key export destinations. Inflationary pressures are expected to ease to an average of 3% in 2023 and 4% in 2024.

Ms.Jyotsana Varma said Cambodia also faces risks that hinder economic growth, including: weak economic growth in the United States and Europe, high private debt, lower-than-expected growth in tourist arrivals and foreign direct investment, high energy prices and climate change.

Source：panasialifekh.com