Ministry of Economy and Finance Predicts Cambodia’s Economic Growth at 6.3% in 2025

• 14 February 2025
• Local News
• 3364 Views

In a promising forecast for the nation, Cambodia’s Ministry of Economy and Finance has announced a projected economic growth of 6.3% for the year 2025. This optimistic outlook, unveiled during a public forum on macroeconomic management and the 2025 budget law, is attributed to robust performance in key sectors, including apparel, textiles, agricultural exports, and services.

The ministry’s 2025 summary budget report highlights that the industrial sector is set to experience significant growth at 8.6%, while the services sector is expected to expand by 5.6%. On the other hand, the agriculture sector is expected to see a more modest growth of 1.1%.

With these projections, Cambodia’s gross domestic product (GDP) at current prices is expected to reach approximately 209,163 billion riels, translating to about USD 5.14 billion. Furthermore, GDP per capita is forecasted to rise to USD 2,924, reflecting improved living standards nationwide.

The report also points to the stability of the riel exchange rate, which is projected to remain at around 4,069 riels per US dollar in 2025. The average annual inflation rate is also expected to hover at a manageable 2.5%, contributing to a stable economic environment.

Regarding financial resilience, Cambodia’s international reserves are expected to climb to USD 24.42 billion, sufficient to cover 7.5 months of exports. This positive trend is bolstered by the effective implementation of the Pentagon Strategy – Phase 1, which has been critical in driving economic growth to 6% in 2024.

As the Government focuses on enhancing public finance frameworks, the anticipated growth illustrates Cambodia’s commitment to economic development and stability in the coming years.

• Economy and Finance