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

The expansion will mainly be supported by construction and real estate, tourism, and agriculture

The expansion will mainly be supported by garment exports, construction and real estate, tourism, and agriculture

Cambodia is forecasted to see a 5.4 percent economic expansion in 2022 and a 6.6 percent growth in 2023, according to Xinhua. The GDP per capita was expected to rise to USD1,785 this year and would be further up to USDS1,924 next year.

The expansion will mainly be supported by garment exports, construction and real estate, tourism, and agriculture. It is estimated that the industrial sector will grow 9.2 percent in 2023 while the service sector, 6.6 percent, and agriculture, 1.1 percent. 

Ly Sodeth, senior country economist at the World Bank, seconded this sentiment, saying, “The surge in manufacturing exports-especially garment, footwear, travel goods, and bicycle manufacturing; the revival of the travel and tourism industries; and the return of foreign direct investment inflows have helped sustain economic recovery in 2022.” 

More: Cambodia targets 1.5 to 2 million foreign tourists by year-end

Furthermore, according to Sodeth, new free trade agreements, such as the Regional Comprehensive Economic Partnership (RCEP) and the Cambodia-China Free Trade Agreement (CCFTA), have helped boost Cambodia’s agriculture and agro-processing industries.

Meanwhile, Khmer Times reports that Cambodia has the potential to be the next Asian Tiger.

It was Anthony Galliano, President of the American Chamber of Commerce (AmCham), who expressed his confidence in the rapidly growing Cambodian economy. Considering the country’s historical economic achievements and its promise as one of the region’s most promising investment destinations, the country deserves to be viewed as one of the most attractive investment destinations in the world.

Anthony added that Cambodia also emerged as one of the least blemished economies with one of the lowest mortality rates due to the pandemic as a result of almost perfect government management of the Covid-19 pandemic, maintaining a balance between health and social safety and economic security and stability.

“Historical GDP growth is one of the world’s best in the 21st century and the future outlook points to a resumption of this stellar performance. The International Monetary Fund (IMF) is projecting that Cambodia will be the region’s fastest-growing economy by 2025. The Kingdom has a remarkable near zero unemployment rate and is finally creating better jobs with rising incomes,” he said.

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