CPP says Cambodian economy to grow 6.3% in 2025
CPP says Cambodian economy to grow 6.3% in 2025
The CPP is proud of Prime Minister Hun Manet’s leadership. He has driven socio-economic development, strengthening the financial situation, macroeconomic stability and social security, read a statement
With the gradual recovery of the global economy, the Cambodian economy in 2025 is expected to continue its momentum at a rate of 6.3 percent, indicating a return to pre-Covid-19 growth levels, said the Cambodian People’s Party (CPP) on Sunday.
The projection was announced in a statement at the end of the two-day of the Outcome of the 45th Convention of Fifth Term Central Committee of the Cambodian People’s Party (CPP) at the party headquarters in Phnom Penh.
According to the statement, the convention proudly acknowledged immense success in social and economic development, a testimony to Cambodia’s economic resilience in the midst of the complex developments of international situations and numerous other negative factors.
“Specifically in 2024, the Cambodian economy grew 6 percent with low inflation rate at 0.8 percent, and a stable exchange rate around 4,071 riels per one US dollar. In addition, Cambodia’s international reserves reached $22.511 billion, equivalent to about 7 months of imports in 2024,” read the statement.
Coupled with these, Cambodia’s employment environment also continued to be stable. On this basis, the people’s living standards continued to improve, as manifested in the continued growth in Gross Domestic Product (GDP) per capita from $2,520 in 2023 to about $2,713 in 2024.
“With 2024’s development and with slow and constant improvement in the overall economy in the world, Cambodian economy in 2025 is projected to grow at 6.3 percent. With such development, it reflects that Cambodia’s national economy is returning to a growth level similar to the pre-Covid-19 pandemic level,” the CCP Congress highlighted.
Addressing a press conference on Sunday, Suos Yara, spokesman for the Cambodian People’s Party, emphasised the positive economic indicators.
He said that the entire assembly is confident and proud of Prime Minister Hun Manet’s leadership. During his seventh term, as the successor of the Cambodian People’s Party and the leader of the Royal Government, he has driven socio-economic development, particularly strengthening the financial situation, macroeconomic stability, and social security.
“We are satisfied with the assessment of our economy, confident that it will continue to grow. On this basis, the living standards of the people have improved, as reflected in the continued increase in the average gross domestic product per capita from $2,520 in 2023 to approximately $2,713 in 2024,” said Yara.
He went on to add that based on the growth in 2024 and the gradual recovery of the global economy, Cambodia is projected to achieve a 6.3 percent growth rate in 2025, signalling a return to pre-pandemic economic conditions.
Sok Eysan, a CPP spokesperson, also said that in just one year and seven months, the 7th term of the Royal Government led by Prime Minister Hun Manet has made remarkable progress in building and developing the country, with rising incomes reflecting strong economic growth.
He said that in December last year, the United Nations assessed Cambodia to exit the least developed country status in 2029. 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 percent growth rate, with inflation remaining stable at around 2 percent.
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 percent, an improvement of 0.1 percent over 2024.
With this economic growth, the government has actively continued to implement the ‘National Social Protection Policy Framework 2016-2025’, along with six priority policy programs that have had a positive impact on maintaining living standards and improving public welfare, added the statement of the CPP Congress.
Additionally, the living conditions of factory workers, employees, and institutional workers have been enhanced through improved working conditions, improved social security systems, and an increase in the minimum wage to $208 per month for 2025. With the inclusion of additional benefits, workers can earn between $225 and $236 per month at a minimum.
Speaking to Khmer Times, Darin Duch, an economist, said that the forecast of 6.3 percent economic growth for Cambodia in 2025 is achievable.
“This optimism is grounded in several key factors. The government’s ongoing investment in infrastructure, such as roads, bridges, electricity, and water systems, continues to lay the foundation for increased productivity and economic expansion. Additionally, the tourism sector, which faced significant setbacks during the Covid-19 pandemic, is showing strong signs of recovery, contributing to economic momentum,” he said.
Darin added that exports, particularly in garments and agricultural products, are also on the rise, further bolstering economic performance. Moreover, the government has adopted stable and forward-looking policies that attract sustainable investment and have garnered strong support from international development partners. While challenges such as global economic uncertainties remain, these combined efforts and strategies provide a solid basis for achieving the forecasted growth rate.
