Cambodia’s Economy Set to Grow Steadily at 5.5% by 2025: World Bank
Published At: January 7, 2025Cambodia’s economic growth is on track for steady improvement, with real GDP projected to grow by 5.5% in 2025 and 2026, according to the World Bank’s December 2024 Cambodia Economic Update. This is a slight rise from the 5.3% growth expected in 2024 and the 5% recorded last year.
Key drivers of this growth include strong manufacturing exports—particularly garments, travel goods, and footwear-and the revival of tourism and foreign investments. Infrastructure projects like new expressways and logistics hubs are also supporting long-term growth in transport and logistics.
However, challenges remain. Domestic consumption, which makes up two-thirds of GDP, is struggling to fully recover due to slowdowns in the construction and real estate sectors. Falling house prices, high household debt, and lower credit growth are holding back spending.
Despite these hurdles, Cambodia’s agricultural sector and export industries are benefiting from trade agreements, while improved infrastructure is boosting connectivity and business opportunities.
The World Bank cautioned about risks to growth, including weaker global demand, rising debt costs, and slower economic recovery in China. Additionally, challenges like rising non-performing loans and global trade tensions could impact the country’s financial stability.
With its small, open economy, Cambodia remains vulnerable to external shocks, but ongoing investments and trade opportunities signal potential for continued recovery.
Cambodia economy GDP Garment Textile
