Cambodia’s real GDP growth is predicted to be 5.8% in 2023 due to a recovery in tourism. Inflation should ease and fiscal policy will support consumption and investment, although export growth may slow. Potential risks include slower growth in Mainland China affecting tourism and investment.
Key View
- We forecast real GDP growth of 5.8% in Cambodia in 2023, up from 5.2% in 2022, driven primarily by a strong recovery in tourism.
- Easing inflation and a broadly supportive fiscal policy stance will also support growth in consumption and investment, while export growth will likely slow amid weaker demand in key trading partners.
- The risks to our forecasts remain mostly skewed to the downside, with slower-than-expected growth in Mainland China likely to weigh on tourism and investment.
We maintain our forecast for real GDP growth of 5.8% in Cambodia in 2023, an increase from 5.2% in 2022 and one of the fastest rates expected among South East Asian markets.
Source : Tourism Recovery To Drive Robust Short-Term Growth In Cambodia