Cambodia’s economy to grow at 6.5% average rate, PM says

Cambodia’s economy to grow at 6.5% average rate, PM says

Prime Minister Hun Manet yesterday said that the Royal Government of Cambodia (RGC) is optimistic about achieving an average annual economic growth of 6.5 percent for the next decade. To realise this goal, he emphasised that the target can only be met through specific, direct, and pragmatic policy formation, coupled with effective implementation.

Presiding over the ‘Cambodia Outlook Conference 2025’ themed ‘Cambodia’s New Growth Strategy Priorities for High Quality and Sustainable Development’ in Phnom Penh, Mr Hun Manet expressed confidence given the potential in the national economy to recover to its pre-pandemic status.

“In the short and medium terms, the government remains highly optimistic that economic growth will continue to be achieved at an average annual rate of 6.5 percent,” said the Premier.

However, this growth will not occur naturally but will require concerted efforts from relevant ministries, institutions and development partners to reinforce the implementation of key policies and reforms, he noted.

The Premier emphasised that this assessment aligns with the Cambodia Development Resource Institute (CDRI) research report which will be detailed during the conference.

“The report projects that Cambodia can achieve an average annual growth rate of approximately 6.4 percent over the next decade,” he said.

However, he noted that this target can only be met through specific, direct, and pragmatic policy formation, coupled with effective implementation.

Mr Hun Manet also expressed hope that the conference’s outcomes would provide valuable input toward this vision.

Aun Pornmoniroth, Deputy Prime Minister and Minister of Economy and Finance (MEF), Sun Chanthol, Deputy Prime Minister and First Vice-Chairman of the Council for the Development of Cambodia (CDC), Neth Savoeun, Deputy Prime Minister and Chairman of the National Authority for Combating Drugs, and Sok Chenda Sophea, Deputy Prime Minister and Chea Serey, Governor of the National Bank of Cambodia (NBC), were present.

Speaking to Khmer Times, Chey Tech, a socio-economic researcher, noted that there is a strong possibility for Cambodia to achieve an average annual economic growth of 6.5 percent over the next decade.

Tech highlighted that before the pandemic, Cambodia enjoyed a 7.0 percent growth rate. However, the national economy saw a significant decline due to the Covid-19 crisis.

“As the pandemic has been brought under control, the economy has rebounded significantly. In 2024, the country recorded a 5.8 percent growth rate, and this year, it is expected to reach approximately 6.3 percent — an increase of about 0.5 percent,” he explained.

Given the ongoing global tensions and economic uncertainty, Tech acknowledged that the government’s cautious approach in targeting an additional 0.2 percent growth is reasonable.

However, he stressed that the medium and high value industrial, garment, and manufacturing sectors remain the primary drivers of the national economy.

“In addition, we should focus on promoting the development of the construction, real estate, tourism, and agriculture sectors, as they are key pillars of socio-economic growth, alongside micro, small, and medium enterprises (MSMEs),” he added.

Tech commended Prime Minister Hun Manet’s initiative during the conference, emphasising its importance in gathering insights from local experts and researchers to develop a realistic policy framework that directly benefits citizens at the grassroots level.

khmertimeskh