Cambodia's economy to grow by 5.3% in 2022; 6.5% in 2023: ADB

06 Apr '22

2 min read

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Cambodia’s economy is forecast to grow by 5.3 per cent in 2022 and 6.5 per cent in 2023, thanks to strong merchandise exports and foreign direct investment inflows, according to a report by Asian Development Bank (ADB).

Industry output is expected to grow by 8.1 per cent in 2022 and 9.1 per cent in 2023. This growth will also be buoyed by the implementation of the Garments, Footwear, and Travel Goods Development Strategy to raise competitiveness in this segment, according to the Asian Development Outlook (ADO) 2022.

“Cambodia’s growth rebounded to an estimated 3 per cent in 2021 after a contraction of 3.1 per cent in 2020. The government has implemented policies to mitigate the negative impact of COVID-19 on businesses and people’s incomes and to support economic recovery. Widespread vaccination against COVID-19 has enabled the country to reopen its borders for trade and tourism, leading to positive economic prospects for this year and 2023,” said ADB acting country director Anthony Gill.

Goods and services exports are forecast to grow in 2022 and 2023 on strong external demand for Cambodian products supported by a recovery in tourism services.

Currently, ADB is implementing $2.3 billion of investment projects in Cambodia. In 2021, ADB committed $327.1 million in sovereign loans and grants and catalysed an additional $5 million through co-financing for Cambodia. ADB’s lending pipeline for 2022–2025 includes $1.44 billion of concessional lending and $37 million in grants to support the country’s economic development and recovery from the COVID-19 pandemic.

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