PHNOM PENH: The International Monetary Fund (IMF) said on Wednesday that Cambodia’s economy is forecast to grow by 4.8 percent in 2025, from 6 percent in 2024, as the economy faces significant external headwinds from trade policy uncertainty and regional tensions.
The Cambodia’s economy mainly depends on garment, footwear and travel goods exports, construction and real estate, tourism and agriculture.
Cambodia’s economy performed strongly in 2024, with real GDP growth reaching 6 percent, supported by a robust rebound in garment and agricultural exports and a recovery in tourism, said IMF Mission Chief to Cambodia Mr. Kenichiro Kashiwase, adding that this momentum continued in early 2025.
“Growth is expected to moderate to 4.8 percent in 2025 as trade tensions and the border dispute with Thailand—despite the recent ceasefire—begin to weigh on external demand, tourism, and remittance inflows,” Mr. Kenichiro Kashiwase said in the statement issued on Sept. 3.
Inflation is expected to rise moderately to about 2.8 percent but remains contained,” he said.
The projection was made after an IMF team, led by Mr. Kenichiro Kashiwase, held discussions with senior officials of the Royal Government of Cambodia, the National Bank of Cambodia, and other public agencies, as well as a wide range of stakeholders, including representatives of the business and banking sectors, and development partners from Aug. 20 to Sept. 2 for the 2025 Article IV consultation.