The International Monetary Fund (IMF) on Monday projected Cambodia’s economic growth at 5.5 percent in 2024, driven by a strong rebound in garment and agricultural exports and the ongoing recovery in tourism.
The projection came after an International Monetary Fund (IMF) team led by Kenichiro Kashiwase, visited Cambodia during Sept. 17-30 to hold discussions for the 2024 Article IV consultation.
‘For 2024, the economy is projected to expand by 5.5 percent driven by a strong rebound in garment and agricultural exports and the ongoing recovery in tourism. However, the construction and real estate sectors are going through a correction, following rapid growth in prior years,’ Mr. Kashiwase said in a press conference on the conclusion of the mission held on September 30.
The Kingdom’s economy traditionally relies on garment, footwear and travel goods exports, tourism, agriculture, real estate and construction.
The kingdom exported US$9,217 million worth of garments, footwear and travel products to internatio
nal markets in the first eight months of 2024, a year-on-year decrease of 22.8 percent, according to a General Department of Customs and Excise’s report.
Cambodia will gain more benefits from the free trade agreements with China and South Korea and mega-regional trade pact – RCEP for the long term, he said.
‘We have seen that Cambodia has received the benefit from the free trade agreements. Moving forward, Cambodia needs to diversify trading partners, not just major economy like U.S., China and Europe. Diversifying trading partners can also provide additional benefits,’ Mr. Kashiwase said.
During the Article IV Consultation mission, the IMF team held discussions with senior officials of the Royal Government of Cambodia, the National Bank of Cambodia, and other public agencies, as well as a wide range of stakeholders, including representatives of the business and banking sectors, and development partners.
Source: Agence Kampuchea Presse