Cambodian Gov’t Reduces 2025 Budget to USD 9.32 Billion Amid Strategic Economic Planning

• 26 October 2024
• Local News
• 698 Views

The Cambodian government has approved a 2025 budget bill totaling approximately 37.95 trillion riels (USD 9.32 billion), marking a reduction from the 38.83 trillion riels (USD 9.54 billion) allocated for 2024. The budget cut came as part of a strategic approach to economic planning. It was endorsed during a cabinet meeting chaired by PM Samdech Hun Manet on 25 October 2024, according to an official press release following the meeting.

The proposed 2025 budget will account for 18.14% of Cambodia’s gross domestic product (GDP) and will maintain the country’s economic momentum while reinforcing development initiatives. The government’s statement highlighted that the budget “will serve as an effective policy tool for the RGC to maintain, protect, and further strengthen the significant achievements made in the past while continuing to lay the foundation for Cambodia’s ongoing development.”

Economic forecasts project Cambodia’s GDP to grow by 6.3% in 2025, reaching approximately 209.16 trillion riels (USD 51.39 billion), with a corresponding increase in per capita income to USD 2,924. The industrial sector is expected to lead the economic expansion with an 8.6% growth rate, followed by a 5.6% rise in the service sector and a modest 1.1% increase in agriculture. Inflation is anticipated to remain at a manageable level of 2.5%.

Following its approval by the cabinet, the draft budget bill will proceed to the National Assembly for further review and approval, after which it will be forwarded to the Senate for final evaluation. Once the legislative bodies endorse, the budget will be presented to His Majesty King Norodom Sihamoni for royal approval, solidifying its implementation for 2025.

• Business and Market
• Economy and Finance
• Policy and Strategy