World Bank retains Cambodia's growth forecast at 5.5% in 2023

Phnom Penh: In an updated report on Monday, the World Bank said that it maintained its economic growth forecast for Cambodia at 5.5 per cent in 2023 and raised it to 6.1 per cent in 2024.

The Southeast Asian country's growth is driven by garment export, tourism, agriculture, and construction and real estate, rpeorts Xinhua news agency.

Aaditya Mattoo, chief economist of the World Bank's East Asia and Pacific Region, said Cambodia's economic outlook remained positive, boosted mainly by the recovery of the services sector, especially tourism and improvements in agricultural production.

"In 2024, the economy is expected to improve further, growing at 6.1 percent as goods exports are projected to also improve and gradually diversify," he said during a video press conference on the launch of the East Asia and Pacific economic update report.

Mattoo said foreign direct investment (FDI) inflows will likely be boosted by the new law on investment and newly ratified free trade agreements.