PHNOM PENH: Cambodia’s economy is experiencing a robust surge, driven primarily by a remarkable 17% increase in exports during the first three quarters of 2024, a report from the General Department of Customs and Excise of Cambodia showed this week. The nation’s exports reached a substantial US$19.8 billion, significantly outpacing the US$16.9 billion recorded in the same period last year.
This impressive growth has caught the attention of the International Monetary Fund (IMF), which has revised its forecast for Cambodia’s economic expansion in 2024 to a strong 5.5%. The IMF attributes this upward revision to the buoyant performance of the export sector, particularly in garments and agriculture, as well as the ongoing recovery in the tourism industry.
The IMF’s mission chief to Cambodia, Kenichiro Kashiwase, emphasized the positive impact of free trade agreements with China and South Korea, as well as the Regional Comprehensive Economic Partnership (RCEP), on Cambodia’s economic growth. These agreements have provided the country with valuable market access and preferential trade terms.
However, Mr. Kashiwase also highlighted the importance of diversifying Cambodia’s trading partners to mitigate risks and capture additional opportunities. By expanding its export markets beyond major economies like the United States, China, and Europe, Cambodia can further strengthen its economic resilience.
Report also showed the Kingdom imported some US$21 billion worth of goods from foreign markets, a year-on-year increase of 15.9 percent, the source pointed out, while Cambodia’s total trade volume reached over US$40.9 billion, up 16 percent from US$35 billion during the same period in 2023.
China, Vietnam, and the U.S. were Cambodia’s biggest partners during the period, with a two-way trade volume of US$11.14 billion, US$7.8 billion, and US$5.8 billion, respectively.
However, the U.S. is the biggest market for Cambodia’s products with a total value of US$7.6 billion, sharing about 38 percent of the Kingdom’s total exports, read the report, adding that Vietnam ranked second with import of Cambodian goods reaching US$2.7 billion, a year-on-year increase of 33.8 percent, while the exports to China were valued at US$1.27 billion, up 20 percent.
Cambodia’s main export products are garments, machinery, electrical equipment, footwear products, leather goods, grain, furniture, rubber, fruits, vegetables, pearls, toys and textiles. The Kingdom’s major imports include medicines and supplements, consumables and food and beverages.
Overall, Cambodia’s strong export performance and favorable economic outlook position the country for continued growth and prosperity in the coming years. The IMF’s positive forecast underscores the nation’s ability to capitalize on its economic strengths and seize opportunities presented by regional and global trade agreements.