The National Bank of Cambodia (NBC) has increased its growth forecast for Cambodia’s economy in 2023 to 5.5 per cent, attributing the rise to a resurgence in foreign tourism, and positive trends in categories including the garment sector.
The garment sector is predicted to grow at a tempered rate of 5.6 per cent. This is due to a slowdown in external demand from significant markets like the US, European Union (EU), and Britain. On the other hand, the non-garment manufacturing sector is projected to grow by an impressive 10.1 per cent, according to the NBC report.
In a recent speech, Prime Minister Hun Sen emphasised the need to “protect the peace, which is the most important prerequisite for national development.” Addressing nearly 20,000 garment factory workers, the Prime Minister also predicted that the service sector, boosted by the expected arrival of foreign tourists, would become Cambodia’s largest by gross domestic product (GDP) composition, outpacing industry and agriculture.