According to Cambodia's Ministry of Economy and Finance, the draft of the "2024 Fiscal Management Law" forecasts the country's gross domestic product (GDP) to reach $35.17 billion in 2024, with an expected economic growth rate of 6.6%. At the same time, Cambodia's per capita GDP is projected to rise from $1,917 in 2023 to $2,071 in 2024.
The report highlights several key drivers behind this economic growth. Firstly, the recovery of the garment manufacturing sub-sector, coupled with continued robust growth in non-garment manufacturing, is expected to drive industrial growth. Industrial sector growth is projected to rise from 5% in 2023 to 8.5% in 2024, with the construction sector continuing to expand at a moderate pace.
Secondly, the resumption of domestic economic activity, especially in the hotel and tourism sectors, is set to boost related sub-sectors such as wholesale, retail, and transportation. As a result, the services sector is forecasted to grow by 6.9% in 2024, following an 8.1% growth rate in 2023.
Additionally, the agriculture sector is anticipated to continue its steady recovery. Growth in crop production and fisheries is expected to drive the agricultural sector's overall growth to 1.1% in 2024, up from 0.9% in 2023.
Despite the promising growth outlook for 2024, Cambodia still faces significant risks and challenges. External factors, such as global market fluctuations and uncertainties in the international economic environment, could hinder the realization of growth targets. On the domestic front, Cambodia faces structural challenges, including limited competitiveness, slow progress in economic diversification, and a continued heavy reliance on external demand. These issues may pose risks to the country's economic recovery and growth prospects.