Cambodia and Vietnam’s GDP growth forecast to rank second in ASEAN in 2023

• Apr 20, 2023

Vietnam’s GDP is projected to grow 5.8 percent this year, sharing the second position with Cambodia in the region, only after the Philippines, according to the International Monetary Fund (IMF).

Notably, Vietnam’s public debt is expected to stay at the lowest as compared with eight other ASEAN member countries, the fund said.

The IMF also forecast that Vietnam’s GDP growth will rebound to 6.9% in 2024, the highest in Southeast Asia, and its public debt will fall to 31.3% of the national GDP in 2028 from the record 47.5% in 2016.

The debt-to-GDP ratio in 2028 will be the lowest within two decades. In terms of inflation, the lender said it will reach 5% and 3% in 2023 and 2024, respectively.

According to the World Economic Forum, In 2022 and 2023, ASEAN’s real GDP growth is forecasted to be 5.2%, according to the Organisation for Economic Co-operation and Development.

The Asian Development Bank (ADB) has said that Cambodia’s GDP growth is expected at 5.5 percent in 2023 and 6.0% in 2024. Cambodia’s inflation rates forecasted at 3.0 percent in 2023 and 4.0 percent in 2024.  Per capita GDP growth for Cambodia is expected at 4.1 percent in 2023 and 4.6 percent in 2024.

Meanwhile the Economists Intelligence Unit (EIU) forecasts that Cambodia’s real GDP growth will accelerate slightly to 5.3% in 2023, after an estimated 5.1% in 2022. The economy will continue to benefit from new trade agreements, which promote inward investment and exports. Wage and income growth will continue to pick up.

Tourism will recover more strongly, owing to the return of tourists from China after that country’s lifting of its zero-covid policy. The ruling Cambodian People’s Party, which won a majority of seats in the local elections in 2022, will perform strongly in the 2023 general election and continue to dominate. VoV World/Khmer Times