Import/Export | Market Reports

National Bank of Cambodia projects 6% GDP growth in 2023, driven by expansion in garment and non-garment industries

Published: January 16, 2023

The National Bank of Cambodia projects that the gross domestic product (GDP) of Cambodia will increase by about 6% in 2023. (NBC). Garment and non-garment products are anticipated to expand by 6.9% and 14.3%, respectively, supporting the expansion. The protracted conflict between Russia and Ukraine is to blame for 2023’s inflation being so unclear.

Inflation in Cambodia, which peaked at 7.8% by the end of the first half of 2022 and progressively decreased in the second half as fuel and food costs subsided, is projected to decelerate to 2.5% in the scenario of a downturn in the global economy and falling food prices.

According to an NBC study titled “Macroeconomic and Banking Sector Development in 2022 and Outlook for 2023,” the adoption of the Regional Comprehensive Economic Partnership Agreement (RCEP) and bilateral free trade agreements is expected to boost the agriculture sector’s growth by 1.1%. (FTAs). 

The limitations on Chinese citizens travelling abroad have been relaxed, and flight operations between China and Cambodia have progressively restarted. In addition, the tariff preference for rice imports into European markets was removed. “The market demand of non-residents for high-end properties would take time to return to pre-crisis levels, the report said, despite increased domestic demand in the cheap real estate market category.

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