Cambodia's economic performance in the first half of 2025

The Cambodian economy entered the first half of 2025 at a turning point, balancing robust exports with the fragility of certain internal drivers. Driven by international demand, particularly from the United States and the European Union, and by a gradual recovery in tourism, economic growth remains positive despite headwinds.

GDP growth and official outlook

The Cambodian government is maintaining its ambitious GDP growth forecast of 6.3% for 2025, which would bring gross domestic product to around $51.4 billion. According to corroborating sources, the World Bank and the Asian Development Bank are forecasting rates of between 4% and 6% in 2025, reflecting the institutions' cautious optimism in the face of the complex global economic situation.

Per capita GDP is expected to approach $3,000 in 2025, highlighting the gradual improvement in living standards.

Growth drivers: exports and tourism

Cambodia has shown remarkable export strength, particularly in the following sectors:

• Textiles, clothing, footwear and travel goods: 11.6% year-on-year increase in the first quarter.

• Bicycles: Exports rose sharply, up 51.7% to $311 million in the first half of the year, mainly to the EU.

• Import growth: Rebound in durable and non-durable goods, indicating increased consumer confidence (cars +79.1%, clothing +29.1%, food +25.3%).

The services sector, buoyed by the recovery in tourism, recorded a 16.1% increase in international arrivals, although the level remains below pre-pandemic levels.

Internal tensions and sectoral diversity

Despite this momentum, the real estate and construction sectors are losing steam, with moderate growth of 2.5% and 2.8% respectively. Domestic investment contracted by 96.7% year-on-year in qualified projects, reducing its share to only 2.1% of new investment.

The industrial sector continues to perform well (+8.6%), while agriculture is showing moderate growth of 1.1%. Banking activity is cautious, with credit growth limited to 5.0% in March 2025.

Inflation, public finances and debt

Inflation remains under control at around 2–2.5%, mainly due to higher food prices and a rebound in domestic demand. Public debt stood at USD 12.18 billion at the end of the first quarter, or 25.9% of GDP (end 2024), a level considered sustainable by the Ministry of Economy and Finance.

Towards resilient and inclusive growth?

Despite international uncertainties, sectoral tensions and pockets of vulnerability, Cambodia is demonstrating resilience, driven by its export and tourism sectors. However, the authorities and international donors are calling for greater economic diversification and faster fiscal reforms to ensure inclusive and sustainable growth in the long term.