World Bank Lowers Cambodia's Economic Growth Forecast to 5.4% in 2023 and 5.8% in 2024

Phnom Penh: Cambodia's economy is projected to grow by 5.4% in 2023, slightly lower than the 5.5% forecast in May and up to 5.8% in 2024 and 6.1% in 2025, with expectations of increased infrastructure investment and the benefits that Cambodia will have from trade agreements with countries in the region. This is according to the latest report on the current state of the Cambodian economy released by the World Bank on November 22, 2023.

This year, a combination of external pressures and structural challenges put pressure on growth despite the recovery in tourism and other services. In its latest Cambodia Economic Update: From Recovery to Reform, the World Bank says that if structural reforms go hand in hand with investment in infrastructure and trade opportunities, it will lead to more economic growth that can accelerate in the medium and long term. In 2022, Cambodia's economy will grow by 5.2%.

Mariam Salim, World Bank Country Manager for Cambodia: "In order to maintain economic growth, Cambodia needs to help the private sector to function as a growth engine, and this can be achieved by taking immediate action to improve the performance of the public sector."

"Maintaining financial stability is also a priority and more needs to be done to restore fiscal space," she added. Despite past investments in public infrastructure, transportation and logistics systems with limited capacity and unreliable power supply continue to be a heavy burden on business and consumer costs. . In the medium term, the simultaneous external crises, including the global epidemic, Russia's war of aggression against Ukraine, and high interest rates on international markets, are expected to continue as an obstacle to economic growth.