Cambodia's economy is displaying encouraging signs of recovery this year, bolstered by improving liquidity and a rise in export demand, according to a recent report by Mekong Strategic Capital (MSC). The report, titled *Economic Snapshot and Outlook 2024*, attributes the positive outlook to a rebound following a significant economic slowdown that began in mid-2022.

The garment, textiles, and footwear sectors have been particularly promising, with exports increasing by 19 percent year-on-year in the first seven months of 2023. However, the report notes that while these sectors are contributing to the economic revival, they remain somewhat volatile.

The report also highlighted an improving liquidity situation within the financial sector, which had been constrained by global financial tightening. Although loan arrears are still high, the situation is expected to improve as household incomes strengthen and interest rates decline, leading to more stable economic conditions in the second half of the year.