ADB's 2023 Growth Forecast For Cambodia Revised Down To 5.3%
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B2B Cambodia
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The Asian Development Bank (ADB) has adjusted its forecast for Cambodia's economic growth in 2023 to 5.3 per cent, slightly lower than its previous projection of 5.5 per cent.
Workers construct an apartment in Phnom Penh, Cambodia. Credit: Axel Drainville, 28 January 2015.
According to the ADB’s September 2023 Asian Development Outlook (ADO) report, the revision was made primarily due to slower-than-expected industry growth in the first half of 2023. However, ADB still maintains its 2024 growth forecast for Cambodia at 6 per cent.
The report also states that the export of garments, footwear, and travel items saw a year-on-year decrease of 18.6 per cent in the first half of 2023. However, this was partially offset by a 22.9 per cent increase in exports of other manufactured goods, such as automotive parts, solar panels, and furniture.
ADB Country Director for Cambodia, Jyotsana Varma, has also highlighted that the service sector exceeded expectations in the first half of 2023, primarily driven by a robust recovery in tourism.
“Better growth prospects in major advanced economies should boost Cambodian exports for the remainder of 2023, even as domestic industrial growth slowed earlier in the year,” said Varma.
Image Credit - ADB's growth forecasts for Cambodia's GDP in 2023 and 2024.
Workers construct an apartment in Phnom Penh, Cambodia. Credit: Axel Drainville, 28 January 2015.
According to the ADB’s September 2023 Asian Development Outlook (ADO) report, the revision was made primarily due to slower-than-expected industry growth in the first half of 2023. However, ADB still maintains its 2024 growth forecast for Cambodia at 6 per cent.
The report also states that the export of garments, footwear, and travel items saw a year-on-year decrease of 18.6 per cent in the first half of 2023. However, this was partially offset by a 22.9 per cent increase in exports of other manufactured goods, such as automotive parts, solar panels, and furniture.
ADB Country Director for Cambodia, Jyotsana Varma, has also highlighted that the service sector exceeded expectations in the first half of 2023, primarily driven by a robust recovery in tourism.
“Better growth prospects in major advanced economies should boost Cambodian exports for the remainder of 2023, even as domestic industrial growth slowed earlier in the year,” said Varma.
(You can see the ADB 2022 predictions for Cambodia here)
Image Credit - ADB's growth forecasts for Cambodia's GDP in 2023 and 2024.