PHNOM PENH: The National Bank of Cambodia (NBC) has forecast the country's economic growth at 5.5 percent in 2023, with an expected yearly inflation rate of 2 percent. Still, external risks may affect economic growth.

The growth forecast was unveiled in a seminar on Financial Stability Review held on July 6 at the NBC's Centre for Banking Studies, in the presence of NBC's Deputy Governor H.E. Mrs. Chea Serey with the participation of public and private stakeholders in the financial sector, banking and financial institutions, development partners, research institutes and universities.

In her opening remarks, H.E. Mrs. Chea Serey said that the main potential risks stem from external factors due to economic openness, as well as the strong dependence of the Cambodian economy on the external sector.

Along with external risks, potential internal risks also need to be considered and monitored, which can arise from the real estate sector, she said, adding that the global and domestic economic slowdown due to the Covid crisis and the recovery in uncertain conditions have led to a steady decline in demand in the sector.

“Faced with this uncertainty, the NBC has been implementing crisis relief measures by carefully restructuring its regulatory framework to strengthen the banking system's resilience while assisting priority sectors such as SME and the agriculture sector during the economic recovery,” she said.

Additionally, maintaining financial stability is an inter-sectoral task that requires the cooperation and coordination of both authorities and stakeholders, as the financial system is closely related, both within the financial sector and with the economy, the NBC's deputy governor said.

Cambodia's economic growth in 2022 was estimated at 5.2 percent, supported by export growth, resumption of domestic economic activities, and rapid tourism recovery.