The government predicts 2024 economic growth in Cambodia.

The government predicts 2024 economic growth in Cambodia.

May 17, 2024, Phnom Penh,— Even with the high level of uncertainty surrounding the global economy, Cambodia’s GDP is expected to expand at a 6.0% annual pace in 2024. As local economic activity continues to stabilize, this development is ascribed to the global economy’s recovery, notably among Cambodia’s trade partners.

With a 5% growth rate in 2023, the momentum is deemed high in comparison to other nations in the region. This strong performance has created a strong basis for the economy to continue expanding in the upcoming year.

The Royal Government of Cambodia’s Strategic Budget Plan 2025–2027 states that the adoption and reinforcement of several policies and strategies is to blame for this optimistic prognosis. A noteworthy factor has been the expeditious implementation of the “Pentagon Strategy – Phase 1” and important policy initiatives. Over the past few years, the administration has persisted in advancing reforms, concentrating on revitalizing already-established economic sectors and fostering the development of new, promising ones. The national economy has benefited from investments in digital and green infrastructure, as well as small and medium-sized businesses.

The objectives of the “Pentagon Strategy – Phase 1” are to increase productivity, support sustainable development, and diversify the economy. It includes the following five main areas: economic modernization, social protection, environmental sustainability, infrastructure development, and human resource development.

The goal of these areas is to develop an economy that is more competitive and resilient enough to withstand shocks to the world economy.

The strategy’s emphasis on small and medium-sized businesses is one of its most important elements (SMEs). The government has put in place a number of programs to help SMEs, such as chances for market expansion, technical support, and funding access. Through the establishment of an environment that is favorable to SMEs, the government hopes to promote economic growth, employment creation, and innovation.

Cambodia is making significant investments in digital and green infrastructure in addition to helping SMEs. The significance of digital transformation in augmenting productivity and competitiveness is acknowledged by the government. The nation’s digital economy is anticipated to grow faster because to investments in e-government services, digital skill training, and broadband access. In the meantime, efforts to promote environmental sustainability and lessen the nation’s carbon footprint are being made in the form of green infrastructure projects, which include developments in renewable energy and sustainable urban planning.

Economic growth also heavily depends on government initiatives to improve commercial relations and draw foreign direct investment (FDI). Trade agreements are anticipated to open up new markets for Cambodian goods and services, such as the Regional Comprehensive Economic Partnership (RCEP) and bilateral free trade agreements.

These agreements will also draw in international capitalists who wish to take advantage of Cambodia’s advantageous location and business-friendly atmosphere.

Human resource development has also been given top priority by the Cambodian Royal Government. Programs for education and career training are being increased in order to give workers the skills necessary for a modern economy. These initiatives seek to raise living standards, lessen poverty, and make sure that everyone gains from economic prosperity.

In addition, maintaining economic growth depends on the government’s commitment to social protection and healthcare. The population’s well-being will increase with the expansion of social safety nets and the improvement of healthcare services, allowing for higher levels of productivity and economic involvement.

With Cambodia still navigating the difficulties brought on by the world economy, the government’s all-encompassing commitment to reforming and implementing policies should pay off handsomely. The durability of the Cambodian economy and the efficacy of these measures are shown in the 6.0% growth rate predicted for 2024.

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