Cambodia's GDP projected to grow at 6% in 2023: NBC

16 Jan '23

2 min read

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Cambodia’s gross domestic product (GDP) is projected to grow by around 6 per cent in 2023 by the National Bank of Cambodia (NBC). The growth would be backed by garment and non-garment products that are estimated to grow by 6.9 per cent and 14.3 per cent respectively. The prolonged Russia-Ukraine war is the reason behind the highly uncertain inflation in 2023.

However, in the scenario of the slowdown in the global economy and declining food prices, inflation in Cambodia is projected to decelerate to 2.5 per cent after it peaked at 7.8 per cent by the end of the first half of 2022 and has gradually declined in the second half as fuel and food prices subdued.

An NBC report, titled ‘Macroeconomic and Banking Sector Development in 2022 and Outlook for 2023’, shows the agriculture sector is forecasted to further rise by 1.1 per cent on the back of the implementation of the Regional Comprehensive Economic Partnership Agreement (RCEP) and bilateral free trade agreement (FTAs).

“Flight operations from China to Cambodia have been gradually resumed and the travel restrictions on Chinese people going abroad have been lifted … as well as the withdrawal of the tariff preference for the imports of rice to European markets amid the rising domestic demand in the affordable real estate market segment while the market demand of non-residents for high-end properties will take times to return to pre-crisis levels,” the report was quoted as saying by Cambodian media outlets.

Fibre2Fashion News Desk (DS)

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