PHNOM PENH (Bernama-Xinhua): Cambodia's economy is expected to grow by 6 per cent in 2024, slightly down from the earlier forecast of 6.6 per cent, according to a mid-year report released on Monday.
The revision is attributed to slower-than-expected growth in key sectors, particularly construction and real estate. The country's economy is primarily driven by exports of garments, footwear, and travel goods, along with tourism, agriculture, construction, and real estate.
The report, issued by the Ministry of Economy and Finance, said the industrial sector, mainly garments, shoes, and travel goods, as well as construction, was projected to grow 7.9 per cent this year.
The service sector, particularly tourism, transport and telecom, trade, and real estate, was expected to increase 5.8 per cent, and agriculture was predicted to rise 0.7 per cent, the report said.
"Construction is expected to recover at a slow pace of 1.1 per cent, as real estate is forecast to grow 1.2 per cent," it said.
Hoe Ee Khor, chief economist of ASEAN+3 Macroeconomic Research Office (AMRO), said that Cambodia remained among the countries with the fastest growth in the region.
"The construction sector may experience a slower recovery pace, with growth potentially falling short of pre-pandemic levels due to the prolonged real estate downturn," he told Xinhua in an e-mail.
"The boost in infrastructure investment will partially offset the weakness in the real estate sector." - Bernama-Xinhua
