PHNOM PENH: The newly formed Cambodian cabinet has wasted no time in prioritizing economic development. Their proactive approach, evident in frequent international visits and a welcoming stance towards foreign investors, is fostering confidence in the country’s economic future.
Contiguously, Cambodia’s economic prospects are soaring, with the International Monetary Fund (IMF) predicting a growth rate of 6.1% in 2024 – the highest in the ASEAN region. This impressive leapfrog over regional giants like Vietnam and the Philippines has caught the attention of experts, who attribute the rise to a combination of factors.
Experts like Mr. Lor Vichet, Vice-President of the Cambodia Chinese Commerce Association (CCCA), believe trade agreements like the Regional Comprehensive Economic Partnership (RCEP) and the Belt and Road Initiative (BRI) are instrumental in propelling Cambodia’s long-term economic success. These agreements create new market opportunities and attract potential investors.
Despite a global economic slowdown, Cambodia’s exports to RCEP countries thrived in 2023. This robust performance, highlighted in a report by the General Department of Customs and Excise, underscores the resilience and strength of the country’s export sector.
The broader ASEAN region, which includes Cambodia, is projected to remain a major driver of global economic growth. The burgeoning fintech sector and increased engagement from major players like China and the US, as observed by Mr. Vichet, further bolster optimism for the region’s future. Forecasts from institutions like the Asian Development Bank (ADB), IMF, and the World Bank all point towards a promising future for ASEAN, with its diverse and multifaceted economies fostering the growth of a thriving middle class.
With the highest projected growth rate in ASEAN and a government actively seeking foreign investment, Cambodia is poised for a period of significant economic expansion. The combined strength of the country’s initiatives and the broader regional upswing paints a bright picture for Cambodia’s economic future.
