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.

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Demand in the U.S. and European markets is weak, playing a role in the slightly weaker growth, said Mr. Shanaka Peiris, Division Chief of Regional Studies at the IMF’s Asia and Pacific Department.

“Cambodia is very exposed to the U.S. and European markets, and demand there is weaker,” Mr. Shanaka Peiris said in an online press conference on the Regional Economic Outlook for Asia and the Pacific on Oct. 18.

The Regional Comprehensive Economic Partnership (RCEP) agreement has helped diversify Cambodia’s economy and exports, reducing the country’s reliance on exports to the U.S. and Europe, he added.

“Cambodia will benefit from this mega-regional trade pact for the long term,” he stressed.

The mega trade pact came into force in January 2022.

Cambodia’s economy traditionally relies on garment, footwear, travel goods exports, tourism, agriculture, real estate, and construction.

Cambodia exported $8.14 billion worth of garments, footwear, and travel products to international markets in the first nine months of 2023, a year-on-year decrease of 17.8 percent, according to a Ministry of Commerce report.

According to the IMF, Cambodia’s economic growth will be 6.1 percent in 2024.

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