Cambodia’s economy is expected to continue its gradual recovery path. A robust tourism recovery, alongside pent-up domestic consumption, will sustain the ongoing improvement in the service sectors, although growth in the garment sector is projected to moderate due to persistently subdued global demand.

Cambodia’s path toward a strong economic recovery could be derailed by several near-term external risks and domestic vulnerabilities. Restoring monetary and fiscal buffers post-pandemic is essential to maintain a resilient and sustainable growth. The government should continue to strengthen its policy framework and focus on structural reforms.

These conclusions are highlighted in the 2023 Annual Consultation Report on Cambodia.