Cambodia’s economy is projected to expand by 6.3% in 2025, according to the Budget Summary for Fiscal Year 2025released by the Ministry of Economy and Finance (MEF) on January 17, 2024.
Under the Royal Government’s Medium-Term Fiscal Framework, this growth rate is expected to raise the country’s Gross Domestic Product (GDP) to approximately 209.163 trillion riel (about USD 51.39 billion).
If achieved, Cambodia’s GDP per capita will reach USD 2,924 in 2025.
Growth Driven by Industry, Services, and Agriculture
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Cambodia’s economic expansion in 2025 is expected to be supported primarily by the industrial, services, and agricultural sectors.
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Industry is forecast to grow 8.6%, reflecting a balance between garment and non-garment manufacturing. However, construction growth is expected to remain below pre-pandemic levels.
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Services are projected to rise 5.6%, driven by continued expansion in hospitality, food services, and support industries, while real estate growth is expected to stay moderate.
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Agriculture is anticipated to grow 1.1%, supported by strong crop and livestock performance and the gradual recovery of the fisheries subsector.
Inflation and Reserves Outlook
The average annual inflation rate is projected to remain at 2.5% in 2025, reflecting stable domestic demand and the normalization of global commodity prices.
Cambodia’s international reserves are expected to hold steady at USD 24.42 billion, equivalent to 7.5 months of import coverage, ensuring continued macroeconomic stability.
Economic Diplomacy Supporting Growth
Economist Duch Darin highlighted that economic diplomacy has played a significant role in Cambodia’s growth momentum, alongside the performance of the industrial, services, and agricultural sectors.
He noted that Cambodia’s robust export performance in both goods and services underscores the success of the government’s proactive diplomatic and trade engagement strategies.
Government Perspective
Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth recently reaffirmed the government’s projection of 6.3% GDP growth for 2025, driven by export-oriented sectors, particularly garment manufacturing.
He also confirmed that inflation is expected to remain moderate at 2.5%, consistent with stable domestic and external conditions.
World Bank Forecast: Growth at 5.5%
Meanwhile, the World Bank offers a slightly more conservative outlook, forecasting Cambodia’s GDP growth at 5.5% for both 2025 and 2026.
In its December 2024 report, “Cambodia Economic Update: From Recovery to Resilience – Harnessing Tourism and Trade as Drivers of Growth,” the World Bank emphasized that Cambodia could enhance its growth potential through:
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Trade diversification, and
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Improved productivity across key sectors.
Tania Meyer, World Bank Country Director for Cambodia, noted that sustainable development and economic resilience would depend on the country’s ability to expand its industrial base and strengthen competitiveness in global markets.