Cambodia’s economic growth is forecasted to reach 6% in 2024, driven by continued strength in export-oriented industries, particularly the garment sector, along with the rise of emerging industries. This optimistic outlook follows several years of steady economic progress, aided by a stable political environment and strong social foundations.
At a recent forum in Phnom Penh, Aun Pornmoniroth, Cambodia’s Deputy Prime Minister and Minister of Economy and Finance, attributed the country’s consistent economic growth to factors such as sustainable peace, social order, and political stability. These elements have helped foster an environment conducive to both domestic and foreign investment, setting the stage for further progress.
Since attaining lower-middle-income status in 2015, Cambodia has made notable strides in poverty reduction and improving living standards. These achievements, combined with ongoing economic reforms, have set a solid foundation for continued growth in the coming years.
Aun Pornmoniroth forecasted that inflation rates would remain stable over the next two years, at 2.7% in 2024 and 2.5% in 2025. This stability is expected to provide a favorable environment for economic expansion, ensuring that Cambodia remains an attractive destination for investment and trade. The country’s proactive fiscal policies and controlled inflation will help ensure that the economy continues to grow without encountering significant inflationary pressures.
Looking beyond 2024, Cambodia’s economic trajectory remains promising, with projected growth of 6.3% in 2025. The continued expansion of export industries, coupled with ongoing development in non-garment sectors and tourism, will provide a robust foundation for future progress. Additionally, Cambodia’s position as a part of Asia’s dynamic economic landscape, with a focus on enhancing its trade relations through its role in regional economic agreements, will further bolster its competitiveness.
As Cambodia’s economy continues to expand, it presents a wealth of opportunities for foreign investors, including those in industries like garment manufacturing, automotive assembly, and food production. With Cambodia’s improving business environment, predictable inflation, and strategic location within Asia, it is becoming an increasingly popular choice for Asia sourcing agents and international businesses seeking to expand in the region.
For companies looking to establish a foothold in Cambodia, the country’s stable political climate, favorable trade agreements, and strong infrastructure developments provide the ideal conditions for long-term growth. Foreign-invested industries are expected to see benefits from various tax incentives and simplified regulatory procedures, making it a promising hub for global trade and investment in Southeast Asia.
With its strong economic foundations, a growing and diversified industrial base, and a stable political environment, Cambodia’s economic growth in 2024 and beyond remains highly promising. As industries like garments, automotive manufacturing, and tourism recover and expand, Cambodia will continue to offer lucrative opportunities for investors, entrepreneurs, and Asia sourcing agents looking to engage with one of Southeast Asia’s most dynamic economies.