World Bank Retains Cambodia's Growth Forecast at 5.5 pct in 2023

Tourists visit the Angkor Archeological Park in Siem Reap province, Cambodia, April 16, 2023. Photo by Sao Khuth/Xinhua

PHNOM PENH — The World Bank maintained its economic growth forecast for Cambodia at 5.5 percent in 2023 and raised it to 6.1 percent in 2024, said its updated report released on Monday.

The Southeast Asian country's growth is driven by garment export, tourism, agriculture, and construction and real estate.

Aaditya Mattoo, chief economist of the World Bank's East Asia and Pacific Region, said Cambodia's economic outlook remained positive, boosted mainly by the recovery of the services sector, especially tourism and improvements in agricultural production.

"In 2024, the economy is expected to improve further, growing at 6.1 percent as goods exports are projected to also improve and gradually diversify," he said during a video press conference on the launch of the East Asia and Pacific economic update report.

Mattoo said foreign direct investment (FDI) inflows will likely be boosted by the new law on investment and newly ratified free trade agreements.

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