According to the latest report from the National Bank of Cambodia (NBC), the Cambodian economy is projected to expand by 6.2% in 2025, while inflation is expected to remain moderate at 2.6% amid current global uncertainties.
Growth Driven by Exports and Industrial Expansion
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The NBC report highlights that strong garment exports and the diversification of manufacturing and product categories will continue to be the main engines driving Cambodia’s economic growth. The expansion of non-garment exports and the development of new industries are also expected to contribute significantly to the country’s overall performance.
External Risks and Global Headwinds
The central bank emphasized several downside risks that could affect Cambodia’s growth outlook. These include potential impacts from U.S. government policies that may slow global and regional economic growth, volatility in international financial markets, and the economic slowdown in China — which could reduce investment inflows and weaken tourism demand across Southeast Asia.
Transition from LDC Status by 2027
The report also warned of possible challenges linked to Cambodia’s planned graduation from the list of Least Developed Countries (LDCs) by 2027.
While this transition reflects positive progress and growing economic resilience, it will also mean the loss of certain trade preferences and concessional financing sources, potentially creating new pressures on the country’s growth momentum.
Comparison with Global Forecasts
NBC’s growth forecast of 6.2% is higher than projections from other major international financial institutions.
The World Bank expects Cambodia’s GDP to expand by 5.5%, while the Asian Development Bank (ADB) estimates growth at around 6.0% for 2025.