Both the World Bank and Asian Development Bank (ADB) rate the Kingdom of Cambodia as a robust economy and an attractive destination for Foreign Direct Investment (FDI). Cambodia has the potential to climb the ranks of South East Asia’s leading economies, where it was eighth with Gross Domestic Product of US$89 billion in 2022.
The ADB expects Cambodia’s economy to build on a strong recovery in 2022, boosted by a 7.3% growth in tourism which saw 2.3 million visitors compared with 200,000 the previous year, immediately post-pandemic. This had a positive knock-on effect in the services sector regarding hospitality and accommodation, local trade, transport and communications services.
Alongside tourism, textiles are the other main component of Cambodia’s economy but output was expected to slow in 2023 due to reduced demand from North America and Europe.