XINHUA – Cambodia’s economy is projected to grow by 5.6 per cent in 2024, up from five per cent in the year before, boosted by a rise in garment export and ongoing tourism recovery, said an ASEAN+3 Macroeconomic Research Office (AMRO)’s press release yesterday.
“A rebound in the garment sector due to stronger demand in major advanced markets, and a robust tourism recovery will fuel Cambodia’s economic growth in 2024 and 2025,” the press release said, adding that the growth for 2025 is forecast at 5.9 per cent.
“The non-garment manufacturing sector is expected to sustain its strong growth momentum, supported by stable foreign direct investment (FDI) inflows,” it added.
The Southeast Asian country’s growth traditionally relies on garment export, tourism, agriculture, as well as construction and real estate.
Cambodia’s path toward a strong economic recovery is confronted with external short-term risks and domestic vulnerabilities such as declining asset quality in the banking sector and a potential weakening of the real estate sector, the press release said.
“Rebuilding policy space, mitigating financial stability risks and strengthening the supervision of the real estate sector are key to post-pandemic growth,” it said.
AMRO Chief Economist Hoe Ee Khor said Cambodia is among the countries with the fastest growth in the region.
“Growth in the garment sector is projected to rebound steadily in 2024, driven by stronger demand for consumer goods in major advanced markets.
“Likewise, the non-garment sector is forecast to sustain its strong growth momentum, supported by stable foreign direct investment inflows,” he told Xinhua in a recent email. “A robust tourism recovery, fuelled by increased flight availability and the gradual return of foreign tourists, coupled with pent-up domestic consumption, will further bolster the ongoing improvement in the service sectors,” he added.
