According to an ADB’s press release on Sept. 30, solid growth is expected through 2026, driven by continued strength in the industrial sector and steady inflows of foreign direct investment.

“The economy has shown resilience in the first half of 2025,” said ADB Country Director for Cambodia Ms. Jyotsana Varma. “Lower-than-expected food price increases and declining fuel costs helped ease inflation, while industrial activity remained robust. Looking ahead, there is scope for continued recovery in the construction and tourism sectors, alongside steady growth in agriculture, which together point to a more balanced and sustainable expansion.”

According to ADB’s flagship economic report, Asian Development Outlook (ADO) September 2025, year-on-year inflation declined sharply from 6.0 percent in January to 1.6 percent in June. Inflation is expected to average around 2.0 percent in 2025 and 2026.

Industry continues to be the main growth engine. Garment exports surged 22.2 percent year-on-year in the first half of 2025, partly due to U.S. buyers stocking up in anticipation of higher tariffs on Cambodian imports.

Despite cautious sentiment among importers stemming from trade policy uncertainty, the garment and non-garment manufacturing sectors are expected to remain strong, supported by a relatively favourable 19 percent U.S. tariff rate.

Growth in the services sector is projected to moderate to 2.8 percent in 2025 and 2.6 percent in 2026.

Tourism showed continued recovery in the first half of 2025 with increased arrivals from the People’s Republic of China. However, ongoing border tensions with Thailand are expected to dampen tourism and weigh on broader service activities in the second half of the year and beyond.

The agriculture sector is forecast to expand by 1.1 percent in 2025 and 2026, supported by sustained export demand and the anticipated return of agricultural labourers from Thailand in the latter half of the year. Agricultural exports rose by 14.1 percent year-on-year in the first half of 2025, driven by robust shipments of cashew nuts and milled rice, which helped offset declines in cassava and rubber exports.

ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific.

Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.

The post ADB Forecasts Cambodia’s Economic Growth at 4.9 Percent This Year first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

The agreement was inked this afternoon between NongDe Agricultural Development Co., Ltd. and Zhengzhou Chen’s Sun Fruit and Vegetable Trade Co., Ltd., enabling the export of Cambodian vegetables and fruits to Henan province.

The signing was witnessed by H.E. Mrs. Cham Nimul, Minister of Commerce, and visiting H.E. Zheng Haiyang, Vice Governor of the People’s Government of Henan Province, China.

Prior to the signing, H.E. Mrs. Cham Nimul and H.E. Zheng Haiyang held a productive discussion on deepening and expanding trade and investment cooperation between Cambodia and Henan province.

On the occasion, the Cambodian Commerce Minister encouraged more Chinese investors to explore Cambodia’s potential sectors, particularly modern agriculture, food processing, automobile, electronics, and digital technology.

She also urged the private sectors of both countries to maximise the benefits of existing free trade agreements (FTAs)—including the Cambodia-China FTA, ASEAN-China FTA, and Regional Comprehensive Economic Partnership (RCEP)—to advance bilateral cooperation and pave the way for further agreements for the benefit of both nations and their people.

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In its latest Global Economic Prospects report released in Washington Tuesday, the bank said international trade turmoil had forced it to lower forecasts in nearly 70 percent of all economies—across all regions and income groups.

For Cambodia, the revised forecast for 2025 is down 1.5 percentage points from the bank’s January projection. The forecast for next year is down 1.0 point.

“Emerging-market and developing economies reaped the rewards of trade integration but now find themselves on the frontlines of a global trade conflict,” said M. Ayhan Kose, the bank’s deputy chief economist.

NEED FOR NEW PARTNERS

“The smartest way to respond is to redouble efforts on integration with new partners, advance pro-growth reforms, and shore up fiscal resilience to weather the storm,” he said.

“With trade barriers rising and uncertainty mounting, renewed global dialogue and cooperation can chart a more stable and prosperous path forward.”

Among emerging and developing ASEAN economies apart from Cambodia, growth this year is now forecast at 5.8 percent in Vietnam and 5.3 percent in the Philippines (down 0.8 points from January for both), 4.7 percent in Indonesia (down 0.4 points), 3.9 percent in Malaysia (down 0.6 points), 3.5 percent in Laos (down 0.2 points) and 1.8 percent in Thailand (down 1.1 points). Myanmar’s economy is forecast to shrink 2.5 percent (down 4.5 points)

‘LARGE EXPOSURES’

“The increase in trade policy uncertainty, reduced confidence, and spillovers from softer external demand in major advanced economies and China are likely to curtail exports and private investment in the region, since there are several economies with large exposures to global trade, notably Cambodia, Thailand, and Viet Nam,” the bank said.

“While some economies will benefit from fiscal policy support—such as social spending programmes and public investment in Indonesia, Malaysia, Thailand, and Viet Nam— the full macroeconomic effects of higher trade barriers, which are hard to predict, could weigh on growth.”

DOWNSIDES AND UPSIDES

The bank said risks to the regional outlook for emerging and developing economies in East Asia and the Pacific “have intensified since January, including the possibility of a reversion to previously announced higher trade barriers and persistently elevated policy uncertainty.

“Other downside risks include tighter global financial conditions, spillovers from weaker growth in major economies, increased geopolitical tensions, and natural disasters.

“There are, however, some upside risks associated with larger-than-expected fiscal expansions in China or major advanced economies and productivity gains from technological adoption.”

On its global forecast for 2.3 percent growth this year, down from 2.7 percent in January, the bank said growth could rebound faster than expected if major economies could mitigate trade tensions—which would reduce overall policy uncertainty and financial volatility.

“If today’s trade disputes were resolved with agreements that halve tariffs relative to their levels in late May, global growth would be 0.2 percentage point stronger on average over the course of 2025 and 2026,” it said.

‘LIBERALISE MORE BROADLY … DIVERSIFY TRADE’

Amid rising trade barriers, the bank urged developing economies “to liberalise more broadly by pursuing strategic trade and investment partnerships with other economies and diversifying trade—including through regional agreements …

“Policymakers should focus on mobilising domestic revenues, prioritising fiscal spending for the most vulnerable households, and strengthening fiscal frameworks.

“Finally, to accelerate economic growth, countries will need to improve business climates and promote productive employment by equipping workers with the necessary skills and creating the conditions for labour markets to efficiently match workers and firms,” the bank said.

The post World Bank Forecasts 4% Growth for Cambodia This Year, 4.5% Next Year first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

The discussions focused on strengthening bilateral trade and investment cooperation, emphasizing the importance of open and constructive dialogue as a foundation for achieving a fair and balanced trade relationship. Both sides committed to further meetings in the near future. A government press release reiterated Prime Minister Hun Manet’s commitment to close cooperation with the U.S. to foster mutually beneficial trade and investment.

Simultaneously, Chinese President Xi Jinping is set to arrive in Cambodia today for a state visit. Prime Minister Hun Manet warmly welcomed President Xi, highlighting the enduring historical friendship between Cambodia and China. He emphasized the continued expansion of relations and cooperation across all sectors.

Prime Minister Hun Manet noted that the 67-year relationship, forged during Norodom Sihanouk’s era and further developed by Hun Sen and the current government, has reached the level of a comprehensive strategic partnership and “ironclad friendship.” He pointed to the ongoing achievements within the Diamond Cooperation Framework and the shared goal of building a Community with a Shared Future, based on mutual respect and non-interference.

Prime Minister Hun Manet acknowledged China’s pivotal role in Cambodia’s socio-economic development, particularly in infrastructure, investment, and tourism. He also credited the partnership with enhancing Cambodia’s independence, national defense, and international standing.

Prime Minister Hun Manet expressed his anticipation for discussions with President Xi to chart a course for future cooperation.

President Xi Jinping’s visit, from April 17th to 18th, 2025, at the invitation of King Norodom Sihamoni, will include Royal Audiences with the King and Queen-Mother Norodom Monineath Sihanouk. He will also meet with Senate President Hun Sen and Prime Minister Hun Manet to discuss bilateral ties and regional and international issues.

The Cambodian Ministry of Foreign Affairs and International Cooperation described the visit as a “milestone,” reinforcing the traditional friendship and the comprehensive strategic partnership between the two nations. Several agreements are expected to be signed during the visit to further promote cooperation across various sectors. This marks President Xi Jinping’s second state visit to Cambodia, following his first in 2016.

The post Cambodia Pursues Trade Talks with the U.S. as Chinese President Xi Jinping is Set to Arrive Today first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

Samdech Moha Borvor Thipadei Hun Manet highlighted the call in a message to his compatriots to mark the 8th National Day for the Promotion of the Use of Cambodian Products to fall on April 9.

Samdech Thipadei Hun Manet, who is also the Honorary Chair of the National Committee to Promote the OVOP Movement, encouraged a national spirit of pride in Cambodian products to motivate the producers, emphasing that there is no bigger support for Cambodian products than the one from the fellow Cambodians.

According to the Prime Minister, Cambodia has been diversifying its economy, and the promotion of OVOP is part of the endeavour.

The government launched the OVOP policy to engage and promote local producers in tapping abundant resources and raw materials in Cambodia and processing them into high-quality products.

Samdech Thipadei Hun Manet underlined the importance of mainstreaming digital technology into the production chain of all domestic products not only to elevate their quality but also to reduce cost and ensure their competitiveness in both the local and international markets.

The post PM: Quality of Cambodian Products Improved, More National Support Needed first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

This marks another important step by the National Social Protection Council (NSPC) to strengthen support mechanisms for the development of Cambodia’s informal economy, as outlined in the National Strategy for Developing the Informal Economy 2023–2028, said the Ministry of Industry, Science, Technology & Innovation (MISTI).

“The development of the informal economy and the social protection system are a strong foundation that is interconnected and complementary to each other in promoting the national economy and the well-being of all citizens,” said H.E. Hem Vanndy at the opening ceremony.

The Royal Government of Cambodia has increased its focus on building the capacity, resilience, and competitiveness of the informal economy by prioritising social protection, crisis resilience, and support services for informal economy actors.

The National Strategy for Developing the Informal Economy identifies key roles for NSPC under Key Measure 3—providing social protection and support—and Key Measure 4—delivering capacity building and services for those onboarding the system.

“Social security registration is a vital mechanism for implementing the strategy and supporting those onboarding as informal economy actors, which enables them to register and pay to access the National Social Security Fund (NSSF) benefits,” stated H.E. Minister.

According to MISTI, as of Mar. 22, 2025, the Digital Platform for Onboarding the Informal Economy has received 36,824 applications: 1,949 as employees, 1,226 as micro-enterprises, and 33,649 as self-employed individuals.

The Social Security Formalisation Plan is expected to serve as a catalyst to encourage informal economy actors to enroll in the social security system, especially in the health care regime, in line with the principle of “Leaving no one behind,” added the same source.

The post Social Security Formalisation Plan Launched to Boost Informal Economy Support first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

The figures were shared during a large-scale public campaign co-organised in Siem Reap province on Mar. 19 by the Coordinating Committee on Informal Economy Development (CCIED) and the Siem Reap provincial administration, aimed at enhancing understanding and scale up the province’s informal economy registration.

Siem Reap currently ranks seventh with 1,466 registrations, and the campaign aims to elevate the province’s ranking, said the Ministry of Industry, Science, Technology & Innovation (MISTI) in a news release this morning.

On the occasion, the source continued, the CCIED and Siem Reap provincial administration called on informal economy actors in the province to onboard the platform to access various benefits the government has been developing for their personal and socio-economic development.

Addressing approximately 3,500 attendees, H.E. Hem Vanndy, Minister of MISTI and CCIED Chairman said, “The Royal Government prioritises the development of the informal economy to enhance participation in supply chains and value-added activities, while also contributing to poverty reduction and social equity.”

He outlined key benefits of onboarding, from gaining identification and skills training to access to social security benefits, formal financial services, social protection and tax exemption and forgiveness.

H.E. Prak Sophorn, Governor of Siem Reap province, highlighted the government’s focus on tourism development in Siem Reap, Cambodia’s fourth-largest province, home to over 1.2 million residents. He stressed the importance of advancing the informal economy, the government’s 4th strategic policy programme for the realisation of Cambodia’s Vision 2050. He also encouraged informal economy workers to join the platform, which would help the government create a database for targeted support and interventions.

The platform provides multiple registration options through the CAM-IE mobile app, web portal, and designated registration points at Wing Bank, ACLEDA Bank, ABA Bank, SME Bank, and ARDB Bank.

The post Digital Platform for Onboarding the Informal Economy Receive Nearly 34,000 Applications first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

The forum was organised from Mar. 11 to 12 at Oakwood Premier Hotel, Phnom Penh by the Digital Economy and Business Committee, with support from the Capacity Building Research and Development Fund of the Ministry of Post and Telecommunications.

H.E. Kong Marry, Secretary State at the Ministry of Economy and Finance and Secretary General of the General Secretariat of Digital Economy and Business Committee, presided over the event with the participation of H.E. Keo Sothie, Secretary of State at the Ministry of Post and Telecommunications, along with representatives from various government ministries and institutions, private sector, educational institutions, associations, and development partners.

The forum aimed to foster the exchange of new ideas, innovations and experiences related to the digital economy, and promote the building of networks and business communities and the digital economy in Cambodia.

The two-day Digital Economy Forum 2025 featured presentations and discussions focusing on the overall aspects of the digital economy and society, digital transformation for enterprises, digital literacy and skills for enterprises, cybersecurity, data protection, digital assets and digital payments.

Each presentation sparked lively discussions, drawing valuable insights from distinguished speakers and participants.

In his keynote address, H.E Kong Marry highlighted how digitalisation can drive innovation, create new business models, and improve productivity across the private sector and the broader economy.

“The rapid development of digital technology and the potential of digitalisation accelerate the growth of Cambodia’s digital economy by bringing new business models, promoting innovation, and increasing productivity and efficiency in both the private sector and the economy as a whole,” he said.

He encouraged businesspeople and the public to embrace and use digital tools to maximise their benefits, aiming to promote the development of Cambodia’s digital economy and society.

The forum attracted a total of 256 participants on the first day and 148 on the second, fostering robust discussions on the future of digital economy in Cambodia.

The Committee on Digital Economy and Business has committed to continuing these forums in the years to come, solidifying its role in driving Cambodia’s digital transformation.

The post Digital Economy Forum 2025 Held to Foster Cambodia’s Digitalisation first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

The government has promoted the registration of SMEs in the informal sector into the formal economy, said H.E. Hem Vanndy, Minister of MISTI. “These efforts have reflected the ministry’s commitment to developing entrepreneurs and boosting a sound environment for business growth,” he said at the ministry’s annual meeting on Feb. 26.

The ministry is committed to fostering entrepreneurship and supporting the growth of SMEs, H.E. Hem Vanndy said, adding that, efforts include formalising the informal economy to create new and decent jobs, as well as developing and revising legal frameworks and regulations.

As the SME sector is the backbone of the economy, the Royal Government of Cambodia has tasked the ministry and other stakeholders to jointly work to motivate informal ventures to integrate into the formal economy.

The state-run SME Bank assures a reliable and sustainable banking system for all SMEs through disbursement of loans to help SMEs expand their businesses.

The post Number of MSMEs Reaches Nearly 44,000 first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

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.

The post Strategic Recovery: How Cambodia Addressed the Economic Impact of COVID-19 first appeared on Estatedia | Economy & Real Estate Media in Cambodia.