PM: Cambodia Should Revise National Economic Growth This Year
Phnom Penh, January 31, 2024 --
Prime Minister Samdech Moha Borvor Thipadei Hun Manet this morning noted that this year, Cambodia should revise her national economic growth.
Addressing the launching ceremony of the Special Programme to Promote Investment in Preah Sihanouk Province 2024, Samdech Thipadei Hun Manet said 2024 is the time to revise our economic growth.
The global economy is projected to recover due to the improved U.S. economic situation as well as the economic intervention in China, but we have to pay attention to the insecurity issue in some areas, he said.
In fact, the attack of Houthi – a rebel group in Yemen – in the Red Sea has also affected the transport of Cambodian goods, Samdech Thipadei pointed out.
“We have to pay attention to this issue as Houthi’s attack caused our goods transport to change to new road where is 7,000 kilometres longer and the time is delayed up to 14 days,” he explained.
In its Economic and Banking Industry Update issued early this week, the National Bank of Cambodia (NBC) has projected the Cambodian economic growth at 6.4 percent in 2024, up from estimated 5.5 percent in 2023, mainly driven by tourism and manufacturing sector.
The NBC said Tourism is expected to recover due to the improvement of tourism situation in the region as well as the continued development and improvement of infrastructure that will support the sector.
Through the implementation of the new investment law, the manufacturing sector is expected to achieve better growth than 2023, especially non-garment manufacturing products, and the garment sector is expected to grow steadily.
Agriculture is projected to grow slightly over 2023, benefiting from continued market diversification to the members of the Regional Comprehensive Economic Partnership Agreement (RCEP) and bilateral free trade agreements, coupled with the Royal Government of Cambodia's support policy to boost production and markets.
The construction and real estate sectors affected by the recent crisis are projected to continue to grow slowly, which will continue to be supported by public infrastructure development projects, coupled with a slow recovery in domestic demand focused on affordable housing, while demand for luxury construction serving non-residents is expected to remain weak.
Inflation in 2024 is projected to be 2.5 percent slightly higher than in 2023, mainly due to expectations that global crude oil prices may rise after oil exporters plan to cut supplies.
