Cambodia's economy is expected to grow by 6.6% as GDP per capita will reach $2,071 by 2024

Cambodia's economic growth rate will reach 6.6% by 2024, and the gross domestic product (GDP) per capita will reach $2,071.

This is according to the draft law on finance for management 2024 announced by the Ministry of Economy and Finance.

According to the report, for 2024, Cambodia's economy will continue to grow, with an expected growth rate of around 6.6%, bringing the current GDP to around 142,957 billion riels, equivalent to about $35,168 million. At the same time, GDP per capita is expected to reach $2,071, compared to $1,917 in 2023.

The ministry report said that the expected growth of 6.6% was supported by a number of key economic sectors, including:

First, the industrial sector is projected to continue to grow at around 8.5% in 2024 from about 5.0% in 2023 due to the expected recovery of the garment sub-sector, and the non-garment manufacturing sub-sector continues to maintain strong growth while the construction sub-sector continues to grow slowly.

Second, the services sector is forecast to continue a positive trend of 6.9% growth in 2024 from a good base of 8.1% in 2023 due to the continued recovery of domestic economic activity, especially the hotel and sub-sector, and the restaurant will also have a positive impact on other sub-sectors, including wholesale, retail, and logistic sub-sectors.

Third, the agricultural sector is expected to continue to achieve good growth of 1.1% in 2024 compared to 0.9% in 2023 due to the continued good trend of the crop sub-sector and the continued recovery of the fisheries sub-sector while the livestock sub-sector remains stable.

The report added that although Cambodia's economy in 2024 is expected to continue to recover at a growth rate of 6.6%, Cambodia will continue to face major risks and challenges, especially due to the above external factors, and the growth could not be achieved as planned.

In addition, for internal factors, Cambodia still faces a number of structural problems, such as limited competition and a low pace of economic diversification, as well as continuing to rely heavily on external demand.