ADB slashes Cambodia's 2023 growth forecast from 6.5% to 6.2%

22 Sep '22

1 min read

Pic: Shutterstock/ Pilotsevas

The Asian Development Bank (ADB) has lowered the 2023 growth forecast for Cambodia to 6.2 per cent from 6.5 per cent due to weaker global growth even as it maintained its economic projection for the country at 5.3 per cent in 2022.

Cambodia’s garments, travel goods, and footwear outputs remained robust, registering 39.8 per cent year-on-year growth in the first half of 2022, despite the economic slowdown in the United States and Europe, according to the Asian Development Outlook (ADO) 2022 Update.

The report revises Cambodia’s 2022 inflation forecast to 5.0 per cent, from the 4.7 per cent forecast in April, due to the strong pass-through effects of fuel price increases caused by the Russian invasion of Ukraine. The inflation forecast for 2023 was kept at 2.2 per cent, said ADB.

Risks to the outlook include the potential emergence of new and more deadly COVID-19 variants, the monkeypox outbreak, a rapid increase in nonperforming loans, the weakened growth of major trading partners, global supply chain disruptions, and a worse-than-expected surge in energy and commodity prices.

Fibre2Fashion News Desk (NB)

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