Cambodia’s economic growth is projected to reach 5.4 per cent in 2023, marginally down from 5.5 per cent forecast in May, and pick up to 5.8 per cent in 2024 and 6.1 per cent in 2025, on anticipated increases in infrastructure investment and benefits from regional trade agreements, as per the World Bank.
If structural reforms accompany infrastructure investments and trade opportunities, growth should continue to accelerate in the medium to long term. Cambodia’s economy expanded by 5.2 per cent in 2022, according to the World Bank’s ‘Cambodia Economic Update: Accelerating Structural Reforms’.
Despite major investments in public infrastructure, the country’s limited transport and logistics capacity and unreliable energy supply continue to impose high costs on business and consumers. In the short term, overlapping negative shocks from the pandemic, Russia’s invasion of Ukraine, and high international interest rates are expected to continue to constrain growth.