PHNOM PENH, May 18, 2023 — Cambodia’s economy is firmly on a path to recovery, led by manufacturing exports and growth in services and agriculture, the World Bank said in a report today.
Cambodia’s economic recovery solidified in 2022, when real growth accelerated to 5.2%, according to the World Bank’s Cambodia Economic Update: Post -COVID-19 Economic Recovery. A strong rebound in services, especially trade, travel, and hospitality has helped bring Cambodia back to pre-COVID-19 growth levels, with foreign arrivals accelerating as the country hosts the Southeast Asian Games and ASEAN Para Games. This revival is also boosted by easing domestic prices as global oil and food prices stabilize.
With the agriculture sector expanding due to improved access to regional markets following newly ratified trade agreements, economic growth is forecast to accelerate to 5.5% in 2023. However, an extended slowdown in external demand could weaken export-oriented manufacturing, while continued global financial tightening might expose risks in Cambodia’s highly leveraged financial sector.
Last Updated: May 18, 2023