NBC raises Cambodia's economic growth forecast to 5.5% in 2023

03 Aug '23

1 min read

Pic: Shutterstock/aof3061

Insights

The National Bank of Cambodia (NBC) has raised the country's 2023 growth forecast to 5.5 per cent, driven by growth in various sectors.
While the garment sector is expected to grow at 5.6 per cent, non-garment manufacturing is projected to rise by 10.1 per cent.
The country's economy has recovered well from the impact of COVID-19 in 2022.

The National Bank of Cambodia (NBC) has increased its growth forecast for Cambodia's economy in 2023 to 5.5 per cent, attributing the rise to a resurgence in foreign tourism, and positive trends in categories including the garment sector.

The garment sector is predicted to grow at a tempered rate of 5.6 per cent. This is due to a slowdown in external demand from significant markets like the US, European Union (EU), and Britain. On the other hand, the non-garment manufacturing sector is projected to grow by an impressive 10.1 per cent, according to the NBC report.

In a recent speech, Prime Minister Hun Sen emphasised the need to “protect the peace, which is the most important prerequisite for national development.” Addressing nearly 20,000 garment factory workers, the Prime Minister also predicted that the service sector, boosted by the expected arrival of foreign tourists, would become Cambodia’s largest by gross domestic product (GDP) composition, outpacing industry and agriculture.

The recovery of Cambodia’s economy from the impact of COVID-19 in 2022 has been driven by rising global demand, foreign investors’ confidence, the full reopening of borders, and a return to normalcy in the domestic economy.

Fibre2Fashion News Desk (NB)

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