National Bank of Cambodia Reports Economic Growth of 5.9% in H1 2025

• 7 August 2025
• Local News
• 1815 Views

The National Bank of Cambodia has released a report indicating that the nation’s economy grew by an impressive 5.9% in the first half of 2025, despite ongoing external uncertainties that could impact economic stability.

The NBC’s report highlights the robust performance of key sectors, particularly manufacturing, tourism, and agriculture, which have contributed significantly to this growth. The manufacturing sector led the way with a remarkable growth rate of 9.5%, reinforcing its critical role in supporting Cambodia’s economic landscape.

The tourism sector also demonstrated resilience during this period, buoyed by an influx of both international and domestic travelers. Factors contributing to this growth included improvements in key infrastructure, enhanced flight connectivity with various nations, and the hosting of major events that attracted visitors from around the world.

In addition, the agriculture sector experienced a modest growth of 1.2%, supported by increased production in crop yields and fishery resources. However, the real estate sector struggled to keep pace, experiencing a low growth rate of just 0.8%. This sluggish performance was attributed to declining housing prices and reduced credit volumes, alongside a decrease in foreign direct investment.

The report also noted a concerning trend in the Housing Price Index (RPPI), which fell by an average of 3.6%. Within Phnom Penh, prices decreased by 3.6%, while provinces saw a steeper decline of 7.1%. Furthermore, housing loans dropped significantly, by approximately 17.2%, indicating tighter lending conditions.

On the inflation rate, the rate stood at 3.5%, influenced primarily by rising food prices and core inflation. Conversely, the prices of goods and services related to fuel saw a decrease, contributing to the broader economic picture.

Overall, while Cambodia’s economy showcases positive growth, challenges in the real estate sector and rising inflation underscore the complexities the nation faces moving forward. The National Bank of Cambodia continues to monitor these developments closely as the economy navigates through uncertain global conditions.

• Economic and finance