World Bank: Cambodia’s Economic Growth Forecasted to Reach 5.5% in 2025-2026 Amid Global and Domestic Challenges

• 23 December 2024
• Local News
• 254 Views

Cambodia’s economy is projected to achieve a robust growth rate of 5.5% in 2025 and 2026, according to the latest World Bank forecasts. This follows expected growth rates of 5.3% in 2024 and 5% in 2023, reflecting a steady upward trajectory. These findings were highlighted in a report published by Fibre2Fashion on 21 December 2024.

The anticipated growth is driven by a resurgence in manufacturing exports, with strong performances in garments, travel goods, and footwear sectors, bolstered by a continued recovery in tourism. This rebound underscores Cambodia’s ability to leverage key economic sectors despite global uncertainties.

However, the World Bank cautions that several domestic challenges could dampen consumption and overall economic performance. These include declining domestic credit growth, falling property prices, and high levels of household debt.

On the other hand, agricultural production and major infrastructure investments—such as highway expansions and new transport projects—are expected to provide a solid foundation for economic resilience.

The report also emphasises external risks, particularly the impact of weaker global demand and a slowdown in China, Cambodia’s major trading partner. To sustain this growth momentum, the World Bank underscores the importance of proactive government measures to address vulnerabilities and maintain economic stability.

• Economy and Finance