Cambodia's economy is projected to grow by 6.3% in 2025, supported by robust performance in the industrial, services, and agriculture sectors, according to the Ministry of Economy and Finance's Budget in Brief for Fiscal Year 2025. The industrial sector is expected to expand by 8.6%, bolstered by balanced growth in garment and non-garment manufacturing, while construction will recover at a slower pace. The services sector, led by hospitality and food services, is forecasted to grow 5.6%, with tourism regaining momentum. The agricultural sector is anticipated to grow modestly at 1.1%, driven by crop and livestock production alongside a gradual recovery in fisheries.
Economic diplomacy has been instrumental in diversifying export markets and attracting foreign direct investment (FDI) to fuel industrial expansion and strengthen the Kingdom’s resilience. Economist Duch Darin noted the critical role of trade agreements and infrastructure development, which have enhanced Cambodia’s competitiveness in global markets. These efforts, coupled with reforms to investment laws and workforce skill development, are laying the groundwork for sustainable growth while ensuring that economic benefits reach all Cambodians.
While Cambodia outpaces many of its ASEAN+3 peers with an expected 5.7% GDP growth in 2025, risks remain. Trade tensions and potential shifts in U.S. monetary policy could disrupt external demand. However, inflation is forecasted to remain low at 2.5%, supporting consumer confidence and economic stability. As the Kingdom navigates these challenges, targeted investments in human capital and productivity will be key to sustaining growth and fostering long-term economic resilience.
