Cambodia Economic Update, December 2024: From Recovery to Resilience
- Andrew Millar
- Aug 31
- 2 min read
World Bank
Report Description
1st December 2024 (PDF, 58 pages)
The World Bank has released its latest Cambodia Economic Update, December 2024, providing a comprehensive analysis of Cambodia’s macroeconomic conditions, sectoral performance and financial stability outlook, while placing special emphasis on the structural and business barriers that continue to hinder labour productivity.
Summary
The report highlights Cambodia’s modest economic gains, showing recovery in exports and services alongside persistent weaknesses in the property sector and domestic credit. It also identifies critical reforms needed to improve productivity and resilience in the medium term:
GDP growth is projected at 5.3% in 2024, rising to 5.5% in 2025 and 2026, supported by exports and tourism.
Merchandise exports expanded by 13.9% y/y, driven by garments, travel goods and footwear.
International tourist arrivals reached 4.3 million, up 22.5% y/y, but average spending per tourist fell sharply.
Approved FDI-financed projects under the QIP scheme grew by 24.3% y/y, hitting US$1.12 billion in the first eight months of 2024.
Inflation dropped to a 15-year low of 0.3% y/y in August 2024 due to easing food and oil prices.
Non-Performing Loans (NPLs) rose to 6.8% in the banking sector and 8.3% in microfinance, signalling rising financial stress.
Structural reforms identified include reducing corruption, improving infrastructure and skills, and digitising business processes to boost labour productivity.
About Cambodia Economic Update
The Cambodia Economic Update is a biannual report produced by the World Bank since 2009.
It tracks macroeconomic performance, sectoral trends and policy developments in Cambodia.
Each edition provides forward-looking assessments of risks and opportunities for policymakers, investors, and development partners.
About the World Bank
The World Bank is a leading international financial institution dedicated to reducing poverty and supporting sustainable development across the globe.
In Cambodia, the World Bank has been a long-standing partner, providing policy advice, financing and analytical work to strengthen economic resilience, improve governance and support inclusive growth.