The National Bank of Cambodia (NBC) has forecast the country’s economic growth of around 6 percent in 2023, driven by growth in the garment, non-garment manufacturing and tourism sectors.
In the Macroeconomic and Banking Sector Development in 2022 and Outlook for 2023 released on Jan. 11, the National Bank of Cambodia said that the robust growth will continue to reach around 6 percent in 2023, despite the global uncertainty.
The increase will be supported by the expectations of a 6.5 percent growth in the garment sector and a 14.3 percent increase in non-garment manufacturing products, the report read.
The tourism sector is expected to grow by 18.5 percent due to the increase in domestic tourists and the rapid growth of foreign arrivals, with the growing number of flights to Cambodia and the increase in the number of Chinese tourists after the Chinese government eased travel restrictions, stated the report.
The agricultural sector is projected to grow better than 2022 at 1.1 percent, contributing to the entry into force of the Regional Comprehensive Economic Partnership (RCEP) Agreement and the bilateral free trade agreements and the removal of tariffs on Cambodia's rice imports to the European market, NBC said.
The construction and real estate sectors, however, are expected to continue to grow slowly at 1.7 percent and 1.2 percent, respectively, supported by growing domestic demand, focusing on the affordable real estate market.
The recovery of the domestic economy is expected to support an increase in international reserves, which guarantee seven months of imports of goods and services for the next period due to increased inflows of foreign direct investment, exports, tourism and other sources.
Source: Agency Kampuchea Press