Cambodia, home to the famed Angkor Wat temple complex that ranks among Southeast Asia’s top tourist attractions, needs to broaden its tourism offerings and boost trade to sustain the economy’s recovery from the pandemic, according to the World Bank.
The development lender forecast Cambodia’s gross domestic product to grow 5.5% this year, up from 5.2% in 2022, thanks to a rebound in services activity, coinciding with a jump in foreign visitors as the nation hosts the Southeast Asian Games and Asean Para Games.
“To safeguard its economic recovery, Cambodia needs to diversify its tourism products and destinations and improve its trade competitiveness by boosting connectivity, reducing trade barriers, and streamlining customs procedures,” said World Bank Country Manager for Cambodia Maryam Salim.
The nation’s agricultural sector has expanded due to improved access to regional markets following newly ratified trade agreements, according to the report.
Medium-term growth is expected to rise 6%, bolstered by goods and services exports and an increase in infrastructure investments. Recent semiconductor import data from the US showed the Southeast Asian nation to be increasing its shipments to the world’s biggest economy at the second fastest pace in Asia.
The report flagged external demand slowdowns as a risk to manufacturing exports with a possibility of Cambodia’s highly leveraged financial sector being exposed by continued global financial tightening.
