PHNOM PENH: Cambodia's economy is expected to grow 5.3 percent in 2023, with foreign direct investment (FDI) increasing at a rate of 41.6 percent in the first half of the year, despite a tightening global financial situation.

This is according to a press release from the Royal Government of Cambodia, which released a report on the country's macroeconomic situation and public finances on September 20, 2023.

The report also states that the agricultural sector is expected to grow at a rate of 0.9 percent in 2023, while the hotel and restaurant sub-sector is expected to recover at a rate of 41.5 percent.

The non-garment manufacturing sub-sector is expected to grow at a robust 11.7 percent, supported mainly by solar panel exports to the United States.

The inflow of FDI in the non-garment manufacturing sub-sector increased sharply by 172 percent in the first half of 2023.

However, the Asian Development Bank (ADB) lowered its 2023 economic growth forecast for Cambodia to 5.3 percent from an earlier prediction of 5.5 percent, mainly due to slower-than-expected industry growth. The ADB maintained the country's 2024 growth forecast at 6 percent.