World Bank predicts 5.5% economic growth for Cambodia in 2023

Cambodia’s economic recovery solidified in 2022, when real growth accelerated to 5.2 per cent. A strong rebound in services, especially trade has helped bring Cambodia back to pre-COVID-19 growth levels. This revival is also boosted by easing domestic prices as global oil and food prices stabilise, according to the 'Cambodia Economic Update: Post -COVID-19 Economic Recovery' by the World Bank. 

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.

In the medium term, growth is expected to rise to 6 per cent, bolstered by strong goods and services exports and a substantial increase in investment, especially under public-private partnerships for large infrastructure projects such as seaports and roads. Cambodia can aid this growth through investing in connectivity infrastructure and human development, safeguarding financial stability, and promoting diversification of exports to enhance the economy’s resilience and competitiveness.

“To safeguard its economic recovery, Cambodia needs to diversify its tourism products and destinations and improve its trade competitiveness by boosting connectivity, reducing trade barriers, and streamlining customs procedures,” said World Bank country manager for Cambodia Maryam Salim.

Fibre2Fashion News Desk (NB)