Cambodia's economic growth likely to rise to 5.8% in 2024: World Bank

Economic growth is expected to improve marginally to 5.8 per cent in 2024, up from 5.6 per cent in 2023, and should further strengthen to 6.1 per cent in 2025 and 6.4 per cent in 2026 as revival in garment, travel goods and footwear exports and tourism propel the ongoing recovery.

"To sustain economic growth, Cambodia needs to maintain macro-financial stability by restoring fiscal space and safeguarding its financial sector,” said World Bank country manager for Cambodia Maryam Salim in a release.

“Cambodia can also strengthen competitiveness by improving the business climate, streamlining trade procedures at borders, making the energy supply more reliable, and strengthening education," she added

Exports of garments, travel goods, and footwear rebounded in Q1 2024, while non-garment exports, especially of agricultural commodities, remained resilient.

The Association of Southeast Asian Nations (ASEAN) region has emerged as Cambodia's second largest export market after the United States. Rising foreign investment in manufacturing and agriculture also contributed to the recovery.

Inflation declined to zero in March as food prices decelerated, while the current account recorded an unprecedented surplus in 2023 as the trade deficit narrowed and tourism receipts rose.

Fibre2Fashion News Desk (DS)