Cambodia’s economy is expected to experience a significant boost in 2024, according to the Asian Development Bank (ADB). Their latest economic report, released on April 11, 2024, forecasts a growth rate of 5.8%, with the potential to reach 6.0% by 2025.
The report attributes this positive outlook to two key factors:
- Resurgent Industrial Exports: With a projected growth rate of 5.8% in 2024 and 6.0% in 2025, the economy is set to benefit from the positive outlook for garments, footwear, and travel goods (GFT) exports, which have gained momentum since the last quarter of 2023. The robust demand for Cambodia’s non-GFT manufactured goods is expected to sustain its export growth over the forecast period. Furthermore, industrial output growth is anticipated to accelerate to 8.0% in 2024 and 8.4% in 2025.
- Tourism Rebound: The vital tourism industry is expected to see a welcome resurgence as travel restrictions ease and international visitors return. Services are projected to grow by 5.4% in 2024, slightly tapering to 5.2% in 2025 as tourism continues to recover. The country is likely to witness an increase in tourist arrivals, especially from fellow Association of Southeast Asian Nations (ASEAN) members, supported by the positive economic prospects in the region. The recent inauguration of the Siem Reap International Airport is expected to attract more tourists.
From: ADB Cambodia
This forecast aligns with recent positive developments. Cambodia was recently ranked the fastest-growing economy in Southeast Asia for 2024 by Seasia Stats. The International Monetary Fund (IMF) also projects strong growth, with an estimated 6.0% for 2024. The Cambodian government itself remains optimistic, with projections of a 6.6% growth rate this year.
While global economic challenges persist, Cambodia’s robust economic performance in 2023 positions it well for continued growth in the coming years. The combined strength of manufacturing and a resurgent tourism industry paints a bright picture for Cambodia’s economic future.
Source: Asian Development Bank (ADB). (April 2024). Asian Development Outlook.
Photos by: ADB Cambodia
