PHNOM PENH : Cambodia’s economy is forecast to grow 5 per cent this year and 5.4 per cent in 2023, constrained by slowing demand in its main export markets in Europe and the United States and by economic conditions in China, the International Monetary Fund (IMF) said.
Following a regular IMF consultation, it said growth would be underpinned by policy support and a pickup in tourism, but that would be dampened by external conditions and the impact of price rises on consumer spending.
Inflation surged due to increases in fuel and fertilizer costs, while demand for products from Cambodia, a manufacturing centre for textiles and footwear for major global brands, had slowed in the second half of 2022, as had the real estate market, the IMF said in a statement.
It expects inflation to peak this year and fall in 2023, however, adding there were high risks to its growth outlook for Cambodia.
“Uncertainty around the outlook is particularly high, and risks are tilted to the downside,” it said. “The most pressing risks are from rising private debt, conditions in key large economies, and inflation.”