The ASEAN+3 Macroeconomic Research Office (AMRO) released on Thursday its regional economic outlook, predicting a positive year for Cambodia. The report forecasts Cambodia's economy to grow by 5.6 percent in 2024, surpassing the 5 percent growth recorded in 2023. This upward trend is attributed to several factors, garment sector and non-garment exports and continued tourism sector. The Southeast Asian country's growth is mainly driven by garment exports, tourism, agriculture, construction, and real estate. AMRO highlighted a recovery in the garment sector, sustained expansion in other manufacturing exports, and continued tourism rebound will support the ongoing economic recovery. However, the report also acknowledges potential challenges. The recovery trajectory is contingent on external risks and domestic vulnerabilities, particularly prolonged weakness in the real estate sector and a decline in credit quality. The government should restore fiscal space, mitigate financial stability risks, and strengthe n structural reforms to ensure resilient growth, it stated. The report said the Cambodian economy is projected to grow by 5.9 percent in 2025. The report is according to the preliminary assessment by AMRO after its Annual Consultation Visit to Cambodia from May 2 to 13, 2024. The mission was led by AMRO Principal Economist Jinho Choi. AMRO Director Kouqing Li and Chief Economist Hoe Ee Khor participated in the policy discussions. The discussions focused on Cambodia's recent macroeconomic developments and outlook, risks and vulnerabilities, and policy recommendations to secure resilient growth and financial stability. Source: Agence Kampuchea Presse
