The Ministry of Economy and Finance has pegged Cambodia’s 2023 economic growth at 6.6 per cent, and the gross domestic product (GDP) per capita at $1,924 for the year.
This is according to the draft Law on Financial Management for 2023, which was drawn up by the finance ministry and approved by the Council of Ministers on October 28.
The bill will now be sent to the National Assembly (NA) for a vote. If approved, the document will be forwarded to the Senate for review, after which it will be returned to the NA to proceed with a signature from the King – or acting head of state – to become law.
Using a conversion rate of 4,065 KHR per USD, the draft law estimates that GDP will hit 131.276 trillion riel in 2023, or approximately $32.291 billion, resulting in a nearly eight per cent jump in the $1,785 GDP per capita forecast for 2022, assuming a population of nearly 16.8 million for next year.
By comparison, Worldometer elaboration of the latest UN data indicates a population of nearly 17.3 million at present.
“Cambodia’s economic growth in 2023 will be underpinned by three main economic sectors: industry, services, and agriculture,” the finance ministry said.
The draft law projects the industrial sector to grow 9.2 per cent in 2023, compared to 9.0 per cent in 2022, due to strong growth in both the garments and non-garments manufacturing segments, although the construction segment could see a relatively slow recovery.
The service sector is expected to expand by 6.6 per cent in 2023, versus 4.3 per cent in 2022, propped up by continued recovery in domestic economic activity, especially in the hotel and restaurant segments and other tourism-support sectors.
Growth in the agricultural sector is anticipated to tick up to 1.1 per cent in 2023, from 0.7 per cent in 2022, on the back of strong uptrends in the crop and animal husbandry segments, with the fisheries segment also expected to stage a recovery.
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Author: Hin Pisei
Source: The Phnom Penh Post
Publication date: 30 October 2022
