PHNOM PENH (Khmer Times): The International Monetary Fund (IMF) has released a new report, predicting that Cambodia’s economy will grow by 5.8% in 2025, supported by key sectors such as tourism and exports of clothing and agricultural products.
According to the report, Cambodia’s economy has continued to recover, albeit at a slower pace than expected, with gross domestic product (GDP) set to grow from 5.5% in 2024 to 5.8% in 2025.
However, inflation is projected to increase from 0.5% in 2024 to 2% in 2025, but remains manageable.
According to the IMF, the continued recovery of the Cambodian economy at a rate of 5.8% is due to support from several key sectors such as exports of clothing and agricultural products, as well as the recovery of the tourism sector, while the construction and real estate sectors continue to be uncertain due to the increase in non-performing loans and private debt.
At the same time, the IMF also said that the Cambodian economy could be vulnerable due to global macroeconomic conditions, policy changes in major trading partners around the world, and geopolitical divisions that could impact trade flows and foreign investment.
However, the IMF has made a number of recommendations to encourage the Cambodian economy to continue moving forward, including reforming fiscal policy, improving tax collection and tax exemptions, especially increasing spending efficiency, and strengthening public investment management as a core component of economic development, building resilience, and ensuring debt stability, among other recommendations.
It is also worth noting that, according to the forecast of the Ministry of Economy and Finance, Cambodia’s economic growth in 2025 will continue to increase at around 6.3%.
At the same time, the gross domestic product per capita in 2025 is expected to increase to US$2,924. - Khmer Times
