Phnom Penh (FN), Oct. 29 – Cambodia’s economy is forecast to grow at around 6.6 per cent in 2024, while the current Gross Domestic Product (GDP) will also increase to around USD 35,168 million, according to the report of the Ministry of Economy and Finance seen by Fresh News on Sunday (Oct. 29).

According to the Ministry’s summary of the draft law on budget management 2024, the GDP per capita is expected to reach USD 2,071, up from USD 1,917 in 2023. The industrial sector is expected to grow at about 5.0 per cent in 2023 and around 8.5 per cent in 2024, due to the expected recovery in the garment sub-sector and the strong growth in the non-garment sector. The construction sub-sector continued to grow slowly.

The service sector is forecast to obtain a growth rate of 6.9 per cent in 2024 due to the continued recovery of domestic economic activity, especially the hotel and restaurants sub-sector, which will also have a positive impact on other support sub-sectors, including wholesale-retail and transportation sub-sectors.

The agricultural sector is expected to grow at 0.9 per cent in 2023 and continue to achieve a growth rate of 1.1 per cent in 2024 due to the growth in crop sub-sector and the continued recovery in the fisheries sub-sector. The livestock sub-sector remains stable.

Although the Cambodian economy in 2024 is expected to continue to recover at a growth rate of 6.6 per cent, Cambodia will continue to face major risks and challenges, especially from possible external factors, including:

1. The escalation of the regional and global geopolitical tensions;

2. Global economic slowdown, especially in Cambodia's trading partners;

3. The longer-than-expected tightening of monetary policy and the continued dollar appreciation;

4. The rising of prices or high energy and commodity prices;

5. The geographical fragmentation of the economy is reducing its participation in the current globalization in line with the rise of multi-polar tendencies and the division of the economic and trade bloc; and

6. The escalation of the negative effects of climate change.

In terms of internal factors, Cambodia continues to face many structural problems, such as limited competitiveness and a slow pace of economic diversification, as well as continuing to depend heavily on external demand.
=FRESH NEWS