According to the Ministry of Economy and Finance (Cambodia) forecasts, Cambodia’s economy in 2024 is expected to recover and is projected to achieve growth in the range of 6.6%. This growth is expected to result in a Gross Domestic Product (GDP) of approximately 142,957 billion riels, which is equivalent to $35.168 billion. Additionally, the GDP per capita is anticipated to rise to $2,071, compared to $1,917 in 2023.
The expected inflation rate for 2024 is forecasted to reach 2.5%, as a result of the predicted rebound in global fuel prices. This increase would follow a period of lower inflation, but a rebound in fuel costs could put upward pressure on prices for goods and services. However, there is a possibility that concerns arising from uncertainties such as the growing instability of political and economic situations could cause a resurgence in inflation rates.
3 key sectors will play a significant role in Cambodia’s economic growth in 2024, as stated by the Ministry of Economy and Finance (MEF):
Industrial Sector Growth by 8.5%
The industrial sector is expected to experience a growth rate of around 8.5% in 2024, showing an improvement from the approximately 5.0% growth in 2023. This growth can be attributed to the anticipated revival of the garment industry, driven by a rising global demand, particularly from Cambodia’s trading partners like the United States and the European Union. Furthermore, the non-garment manufacturing sector is also maintaining a robust growth trajectory. However, the construction sector is experiencing a slower pace of growth compared to the other sectors.
Service Sector Growth by 6.9%
The services sector is expected to maintain its positive performance, with a growth rate of 6.9% in 2024, slightly lower than the solid base of 8.1% in 2023. This sustained growth can be attributed to the ongoing revival of economic activities within the country, particularly in the hotel and restaurant sectors. The positive momentum in these sectors is expected to have a favorable impact on other related industries such as wholesale, retail, and transportation.
Agricultural sector Growth by 1.1%
The agricultural sector is anticipated to maintain its positive performance, with a growth rate of 1.1% in 2024, compared to a solid base of 0.9% in 2023. This growth can be attributed to the ongoing strong performance of the crop sector and the continued revival of the fisheries sector. Meanwhile, the livestock sector is expected to remain stable during this period.
Please visit Cambodia’s Economy in 2024 Projected to be Led by 3 Main Sectors
Overall, Cambodia’s economy in 2024 is expected to experience a strong recovery, with a projected growth rate of 6.6%. This recovery is fueled by the revitalization of crucial sectors such as industry, services, and agriculture. Despite certain uncertainties like inflation and political instability, the overall outlook for Cambodia’s economic expansion is cautiously optimistic.
Source: Ministry of Economy and Finance. (2024). Budget in Brief.
