Cambodia’s economy is projected to grow by 6.3% in 2025
Cambodia’s economy is projected to grow by 6.3% in 2025
As Cambodia ushers in 2025, its economic outlook reflects a mix of steady progress and high aspirations. As outlined in its medium-term public finance framework, the government forecasts an economic growth rate of approximately 6.3% for 2025.
According to reports, Cambodia’s Gross Domestic Product (GDP) is expected to reach around $51.39 billion in 2025. The GDP per capita is projected to increase to $2,924, a notable rise from $2,713 in 2024. This growth will be driven by key sectors such as industry, services, and agriculture.
The industrial sector is anticipated to grow by 8.6%, fuelled by the continued expansion of garment manufacturing and non-garment production. The garment sector’s growth will be supported by global demand and Cambodia’s strategic “Footwear and Bag Development Strategy 2022-2027.”
Non-garment production will benefit from increased exports and government support for small and medium enterprises (SMEs). The food and beverage manufacturing sector is also set to expand, while the construction industry, despite a slight slowdown due to reduced foreign investment and lower housing construction, remains a vital contributor to growth.
The service sector is projected to grow by 5.6%, with significant contributions from tourism, hospitality, real estate, transportation, finance, and information technology. The tourism industry, in particular, is expected to benefit from a rise in both domestic and international visitors, driven by initiatives like the “Siem Reap Tourism Master Plan 2021-2035” and the “Visit Siem Reap Year 2024.”
The agricultural sector, though modest in its contribution, is expected to grow by 1.3% in 2025.
In addition to government projections, regional and global financial institutions have expressed optimism about Cambodia’s economic trajectory.
The Asian Development Bank (ADB) predicts improved growth in 2025 compared to 2024, while other major lenders foresee Cambodia achieving a 6% growth rate, with inflation remaining stable at around 2%.
The World Bank’s latest projections, however, are slightly less optimistic. In its October report on economic growth in East Asia and the Pacific, it estimates Cambodia’s 2025 growth at 5.4%, an improvement of 0.1% over 2024.
