The National Bank of Cambodia (NBC) projected the Cambodian economic growth at 6.4 percent in 2024, up from estimated 5.5 percent in 2023, mainly driven by tourism and manufacturing sector, according to an NBC’s Economic and Banking Industry Update issued on Monday.

‘Cambodia’s economy is optimistically expected to continue to grow at around 6.4 percent in 2024, supported mainly by growth in tourism and manufacturing,’ read the report.

Tourism is expected to recover due to the improvement of tourism situation in the region as well as the continued development and improvement of infrastructure that will support the sector, it said.

Through the implementation of the new investment law, the manufacturing sector is expected to achieve better growth than 2023, especially non-garment manufacturing products, and the garment sector is expected to grow steadily.

Agriculture is projected to grow slightly over 2023, benefiting from continued market diversification to the members of the Regional Comprehensive Econom
ic Partnership Agreement (RCEP) and bilateral free trade agreements, coupled with the Royal Government of Cambodia’s support policy to boost production and markets.

The construction and real estate sectors affected by the recent crisis are projected to continue to grow slowly, which will continue to be supported by public infrastructure development projects, coupled with a slow recovery in domestic demand focused on affordable housing, while demand for luxury construction serving non-residents is expected to remain weak.

Inflation in 2024 is projected to be 2.5 percent slightly higher than in 2023, mainly due to expectations that global crude oil prices may rise after oil exporters plan to cut supplies.

‘In this context, continued prudent monetary policy will continue to stabilise the Riel exchange rate, as well as continue to contribute to stabilising prices and protecting the purchasing power of the Riel,’ the report underlined.

‘The monetary policy framework will be strengthened, especially the develop
ment of monetary instruments and markets, in line with the launch of the NBC’s benchmark interest rate test to orient the Riel interest rate in the market to a reasonable level,’ it added.

NBC also laid stress on possible external risks including a decline in flows of international trade, investment as well as international financial market uncertainty, while internal risks can be a sluggish recovery in construction and real estate due to a low inflow of foreign investment, and climate change.

Source: Agence Kampuchea Presse

SEOUL, Foreign Minister Cho Tae-yul praised the work of the South Korean Navy dedicated to protecting the country during a visit to a battle unit Monday, saying strong security is what buttresses diplomacy.

Cho made the remark during a visit to the Second Maritime Battle Group of the Navy’s Second Fleet, located in the Pyeongtaek base, 60 kilometers south of Seoul, his office said.

“I came to encourage our soldiers who are working day and night to protect the country in frontline waters … As foreign minister, I am especially grateful because diplomacy can only achieve results against the backdrop of strong security,” the foreign ministry quoted him as saying in a release.

The Second Maritime Battle Group is a unit in charge of carrying out maritime operations to protect the Northern Limit Line (NLL) in the Yellow Sea, the de facto western sea border with North Korea.

Ahead of the visit to the battle unit, Cho paid respects at the memorial monument honoring the fallen sailors of the Cheonan, located at
the headquarters of the Second Fleet.

In 2010, North Korea torpedoed the 1,200-ton-class Cheonan corvette near the western NLL, killing 46 South Korean sailors.

Source: Yonhap News Agency