Cambodia's economy to grow 5.4% in 2023: World Bank

If structural reforms accompany infrastructure investments and trade opportunities, growth should continue to accelerate in the medium to long term. Cambodia’s economy expanded by 5.2 per cent in 2022, according to the World Bank’s ‘Cambodia Economic Update: Accelerating Structural Reforms’.

Despite major investments in public infrastructure, the country’s limited transport and logistics capacity and unreliable energy supply continue to impose high costs on business and consumers. In the short term, overlapping negative shocks from the pandemic, Russia’s invasion of Ukraine, and high international interest rates are expected to continue to constrain growth.

Investment in merchandise manufacturing, including of garments, and exports of finished goods have both weakened, reflecting lower global demand. As a result, manufacturing jobs have dropped by 5 per cent, prompting authorities to provide financial support to laid-off workers.

ALCHEMPro News Desk (NB)