PHNOM PENH: Cambodia’s economy, which had enjoyed robust growth of around 7% for over two decades, experienced a sharp downturn in 2020 due to the COVID-19 pandemic. Global lockdowns and travel restrictions severely impacted key sectors like tourism and garment exports, leading to a 3.1% contraction – the first negative growth in many years.
To address this, the Cambodian government implemented a three-pronged recovery strategy:
- A mix of monetary, fiscal, and structural macroeconomic policies.
- Structural reforms to enhance market competitiveness and address globalization bottlenecks.
- Increased domestic investment facilitated by digital technology.
This strategy was further solidified by the “Strategic Framework and Program to Restore and Promote Cambodian Economic Growth in Living with COVID-19 on a New Normal Path for 2021-2023,” and supported by initiatives like the “Cambodia Digital Economy and Social Policy Framework (2021-2035)” and the “Cambodian Digital Government Policy 2022-2035.”
These efforts have yielded positive results. Cambodia’s economy rebounded, achieving growth rates of 3% in 2021, 5.1% in 2022, 5.6% in 2023, and an estimated 6% in 2024. This growth is reflected in the rising GDP per capita, which increased from $1,600 in 2020 to $1,917 in 2023 and an estimated $2,071 in 2024.
The Ministry of Economy and Finance projects continued growth, estimating 6.3% for 2025, with GDP per capita reaching $2,924 – a substantial increase of over 40% compared to the 2024 projection. This optimistic forecast is based on anticipated investments in small and medium enterprises, digital and green infrastructure, and the implementation of the “Pentagon Strategy – Phase 1,” which is expected to be a significant driver of economic growth and value addition.