Cambodia posts BoP surplus in 2025 Q3 after trade gap narrows

Cambodia posts BoP surplus in 2025 Q3 after trade gap narrows

The third-quarter data point to a more balanced external position, supported by export growth and reduced reliance on external financing, says National Bank of Cambodia.

The Kingdom recorded a surplus in its Balance of Payments (BoP) in the third quarter of 2025, reflecting improving external sector dynamics despite softer capital inflows, according to the latest BoP Statistics Bulletin released by the National Bank of Cambodia (NBC) on Friday.

The BoP registered a surplus of KHR 914 billion (about $223 million), down by KHR 684 billion (around $167 million) from a surplus of KHR 1,598 billion (approximately $390 million) in the previous quarter.

The decline was mainly attributed to a sharp decrease in the net incurrence of external liabilities, even as the current and capital accounts shifted from deficit to surplus.

The NBC reported that the combined current and capital accounts posted a surplus of KHR 350 billion (roughly $85 million) in the third quarter, reversing a deficit of KHR 270 billion (about $66 million) recorded in the preceding quarter.

The improvement was driven primarily by a narrowing goods trade deficit, although this was partly offset by a smaller surplus in the services and secondary income accounts and a wider deficit in the primary income account.

On the financial account side, Cambodia recorded a net incurrence of liabilities amounting to KHR 1,013 billion (around $247 million), a significant decrease from KHR 1,070 billion (approximately $261 million) compared to KHR 2,083 billion (about $508 million) in the previous quarter.

The apex bank said this decline was mainly triggered by an increase in net acquisition of financial assets under other investment and portfolio investment categories. At the same time, net incurrence of liabilities related to direct investment increased, suggesting continued foreign investor interest in long-term projects.

As of the end of the third quarter of 2025, Cambodia’s international investment position showed net external liabilities of KHR 127,332 billion, equivalent to about $31.1 billion. This represented a decrease of KHR 8,146 billion (around $2 billion, or 6 percent) from KHR 135,477 billion (approximately $33 billion) at the end of the previous quarter.

On a year-on-year basis, net external liabilities declined by KHR 15,980 billion (roughly $3.9 billion, or 11.2 percent) from KHR 143,312 billion (about $35 billion) recorded in the same quarter last year, indicating a gradual strengthening of Cambodia’s external balance sheet.

The current account recorded a surplus of KHR 318 billion (around $78 million) in the third quarter, reversing a deficit of KHR 303 billion (approximately $74 million) in the previous quarter.

The NBC attributed this turnaround mainly to a sharp reduction in the goods trade deficit, although weaker performance in services and income balances limited the overall gain.

However, compared to the same period last year, the current account surplus declined sharply by KHR 3,884 billion (about $947 million, or 92.4 percent) from a surplus of KHR 4,202 billion (approximately $1 billion).

The goods account remained in deficit at KHR 2,205 billion (roughly $538 million), but this marked a substantial improvement from a deficit of KHR 4,910 billion (about $1.2 billion) in the previous quarter, a reduction of 55.1 percent.

Year on year, however, the goods deficit widened by KHR 1,355 billion (approximately $330 million) from KHR 849 billion (around $207 million).

Exports of goods reached KHR 34,365 billion (about $8.4 billion), rising by 11.5 percent from the previous quarter. The growth was driven by higher exports of garments, which increased by KHR 2,014 billion (around $491 million), as well as electrical parts and textiles.

In contrast, exports of agricultural products, footwear, and bicycles declined. Compared to the same period last year, total goods exports increased by KHR 2,673 billion (or $652 million).

Imports of goods amounted to KHR 36,569 billion (around $8.9 billion), up 2.3 percent from the previous quarter. The increase was supported by higher imports of construction materials and equipment, food and beverages, garment materials, and vehicles, while petroleum imports declined. On a year-on-year basis, imports grew by KHR 4,028 billion (about $983 million).

Meanwhile, the services account posted a surplus of KHR 1,695 billion (roughly $413 million), down 18.6 percent from the previous quarter. Exports of services fell to KHR 4,790 billion (about $1.17 billion).

Chea Serey, NBC Governor, said the apex bank remains committed to further strengthening and refining the BPM6 compilation methodology to ensure that Cambodia’s balance of payments data are fully aligned with international standards, thereby enhancing the quality of analysis and research by data users.

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