PHNOM PENH, May 23 (Xinhua) -- Cambodia's economy is predicted to grow robustly in 2024, driven by a rise in exports and a continued tourism recovery, said an ASEAN+3 Macroeconomic Research Office (AMRO)'s press release on Thursday.
"The Cambodian economy is projected to grow by 5.6 percent in 2024 and 5.9 percent in 2025, up from 5 percent in 2023," AMRO Principal Economist Jinho Choi said in the news release.
"A recovery in the garment sector, sustained expansion in other manufacturing exports, and continued tourism rebound will support the ongoing economic recovery," he added.
However, the recovery trajectory is contingent on external risks and domestic vulnerabilities, particularly prolonged weakness in the real estate sector and a decline in credit quality, the news release said.
The Southeast Asian country's growth is mainly buoyed by garment export, tourism, agriculture, as well as construction and real estate.
AMRO Chief Economist Hoe Ee Khor said Cambodia is among the countries with the fastest growth in the region.
"Growth in the garment sector is projected to rebound steadily in 2024, driven by stronger demand for consumer goods in major advanced markets. Likewise, the non-garment sector is forecast to sustain its strong growth momentum, supported by stable foreign direct investment inflows," he told Xinhua in an e-mail.
"A robust tourism recovery, fueled by increased flight availability and the gradual return of foreign tourists, coupled with pent-up domestic consumption, will further bolster the ongoing improvement in the service sectors," he added.
Khor said the construction sector may experience a slower recovery pace, with growth potentially falling short of pre-pandemic levels due to the prolonged real estate downturn.
"The boost in infrastructure investment will partially offset the weakness in the real estate sector," he said.
According to the news release, consumer price index (CPI) inflation in Cambodia is forecast at 2.5 percent in 2024 and 2.6 percent in 2025, converging to the pre-pandemic trend. ■
