Cambodia Expected to Lead ASEAN's Economic Growth in 2023 and 2024, Says IMF

Cambodia Expected to Lead ASEAN's Economic Growth in 2023 and 2024, Says IMF

Cambodia is expected to achieve economic growth of 5.6 % this year and 6.1 % next year, up from a growth rate of 5.2 % last year, according to the latest International Monetary Fund (IMF) report released on Tuesday (Oct 10).

The report is mentioned in the IMF's latest World Economic Outlook and shows that Cambodia has the potential to become the fastest-growing economy in ASEAN for the second consecutive year.

In second place is the Philippines, which is expected to grow by 5.3 % this year and 5.9 % next year.

Meanwhile, Indonesia's economic growth is expected to be around 5.0% this year and next, while Vietnam is projected to grow by 4.7% this year and 5.8% next year.

The economies of Laos and Malaysia are also expected to grow by 4.0% this year, with growth remaining stable in Laos and rising to 4.3% in Malaysia next year.

Thailand is expected to grow by 2.7% this year and 3.2% next year. Myanmar's economy is expected to grow by 2.6% this year and next.

The remaining two countries with the largest economies in ASEAN, Singapore and Brunei, are expected to perform less favorably. Singapore's economy is expected to grow by only 1.0% this year and 2.1% next year. Meanwhile, Brunei's economy is expected to contract by 0.8% before rebounding to 3.5% growth next year.

In the report, the IMF said that global economic growth is currently slow and uneven, with global imbalances widening. However, the IMF also highlighted that a number of developing countries have shown considerable resilience, with some even providing positive surprises.

Economic Growth in Cambodia: What's Fueling It?

According to the China Daily, researcher Thong Mengdavid of the Asian Vision Institute in Phnom Penh said several factors are driving Cambodia's economic growth. One is the recovery of the export-oriented manufacturing sector, particularly the garment industry, which has been a major contributor to post-pandemic economic growth.

The full implementation of the Regional Comprehensive Economic Partnership (RCEP) and the Cambodia-China Free Trade Agreement have also had a positive impact. These are strengthening Cambodia's competitiveness, boosting regional trade, and diversifying investment in the agricultural sector.

Similarly, Cambodia's export output reached $16.94 billion in the first nine months of this year, despite a 0.8% decline from last year. Exports to China increased by 18.3% from January to September.

Then, within the RCEP framework, Cambodia managed to increase its exports to other member countries to $5.26 billion in the first eight months of this year, an increase of 22% from last year. This information is based on a report from the Ministry of Commerce.

Other factors contributing to the economic growth include increased international tourist arrivals and the government's efficient revenue administration and effective financial management.

Source: Khmer Times | China Daily

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