Cambodia is seeing a notable recovery in its economy with a strong bounce back in the service sectors. However, the manufacturing sector, primarily the garment industry, finds itself grappling with external pressures. This scenario emerged from the recent appraisal conducted by the ASEAN+3 Macroeconomic Research Office (AMRO) between September 4 to 14, 2023, during its Annual Consultation Visit to Cambodia.
Led by AMRO principal economist Jinho Choi, the team, including director Kouqing Li and chief economist Hoe Ee Khor, engaged in policy dialogues exploring Cambodia’s latest macroeconomic developments and prospective outlooks, the potential risks and vulnerabilities, and the required policy actions to facilitate sustainable growth and ensure financial stability, AMRO said in a media release.
Dr. Choi shared the projected economic growth of Cambodia, anticipating a rise to 5.3 per cent in 2023, a slight increase from 5.2 per cent in 2022. This optimistic outlook is bolstered by a revival in tourism and an upswing in domestic consumption. Dr. Choi noted that “growth is expected to strengthen to 6.2 per cent in 2024 due to resilient consumption and a recovery in garment exports, marking a reversal in the global manufacturing scene.”