Cambodia: 2023 Article IV Consultation-Press Release; and Staff Report

Cambodia has experienced rapid growth over the past decade, outpacing many regional peers. Growth was driven by industrialization, increased foreign direct investment, and a surge in exports, particularly in labor-intensive manufacturing. The economy underwent significant structural shifts and has made strides in poverty reduction. However, the COVID-19 pandemic caused significant setbacks and may have left longer-term scarring. The challenges ahead are to sustain inclusive growth, diversify exports, and navigate potential headwinds from China's slowing growth.