In June, the World Bank admired Cambodia’s economic activity picking up in the first quarter of 2024, driven by a revival of services and goods exports despite subdued domestic demand. The economic growth of the country has been 5.6 per cent in 2023 which is expected to improve marginally to 5.8 per cent in 2024, strengthen to 6.1 per cent in 2025 and reach 6.4 per cent in 2026. The projections are based on revival in garment, travel goods and footwear exports and tourism that are expected to propel the ongoing recovery.
While the international tourist arrivals improved in the first quarter to 84 per cent of pre-pandemic levels, the exports of garments, travel goods, and footwear rebounded with ASEAN (Association of Southeast Asian Nations) region emerging as Cambodia’s second largest export market after the US. Rising foreign investment in manufacturing and agriculture also contributed to the recovery. Inflation also declined to zero in March with deceleration in food prices.
