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Cambodia to see 5.4% economic growth in 2022, 6.6% in 2023

The tourism sector, FDI’s top sector in Cambodia in 2019 and 2020, remained the top sector in 2021

Local governments have worked hard in recent years to enhance living standards and are now focusing on attracting foreign investment to further develop the economy. Dorason/Shutterstock

Cambodia is expected to see 5.4 percent economic growth this year and 6.6 percent next year, according to the Khmer Times.

Phay Siphan, Minister Attached to the Prime Minister and Chairman of Royal Government Spokesperson Unit, said that the economy is set to go up despite the impact of the war between Russia and Ukraine. 

Data provided by the Ministry of Economy and Finance showed that the GDP will reach USD32.3 billion in 2023 and that GDP per capita will be at USD1,924.

More: Cambodia’s growth forecast increases to 4.8% from 4.5%

Cambodia places third for FDI into the Asia Pacific region in Investment Monitor‘s 2022 Inward FDI Performance Index, attracting 15 projects in 2021. The index measures a country’s inward investment levels against its GDP using GlobalData’s FDI Projects Database, which tracks greenfield projects. 

The majority of inward FDI in 2021 went to Phnom Penh with eight investments. 

Moreover, Singapore replaced China as the country’s leading investor in 2021, accounting for six projects, or 40 percent of inward FDI. 

The tourism sector, FDI’s top sector in Cambodia in 2019 and 2020, remained the top sector in 2021, sharing first place with business and professional services.

Local governments have worked hard in recent years to enhance living standards and are now focusing on attracting foreign investment to further develop the economy. Cambodia has traditionally relied mainly on agribusiness and textile industries. To diversify, however, various new projects have been implemented.

Authorities implemented a new law in October 2021 to support bolstering investment. Presently, Cambodia allows foreign businesses opening operations there to own 100% of the company, with no restrictions on foreign ownership of shares or money or funds leaving the country.

While Cambodia’s overall international exports increased by 32.1 percent YoY year to USD7.6 billion in the first four months of 2022, it has already reported more FDI projects in 2022 than it did for the entire year of 2021.

Foreign investment may be driving Cambodia’s recovery from the pandemic, according to these figures.

The Property Report editors wrote this article. For more information, email: [email protected].

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