PHNOM PENH: Cambodia has revised down its economic growth forecast to five per cent in 2025 from an earlier prediction of 6.3 per cent, the Ministry of Economy and Finance said in a mid-year report on Saturday (Aug 23).
The slowdown was due to the negative impacts of the closure of land border between Cambodia and Thailand and a 19 per cent tariff imposed by the United States on Cambodian exports.
"Cambodia's economic growth will slow down to five percent, partly due to the impact of land border closure, which has disrupted manufacturing activities, transportation of raw materials and exports, as well as flows of international tourists," the report said.
"The implementation of US reciprocal tariffs will hinder growth in key sectors that support Cambodia's economy such as garments and non-garment manufacturing products of furniture, tyres and electronic components to the US market," it added.
The South-East Asian nation's economy mainly relies on garment, footwear, and travel goods exports, tourism, agriculture, and real estate and construction.
The report said for 2025, the industrial sector was forecast to grow 7.1 per cent, the service sector at 3.8 per cent and agriculture at 0.9 per cent. - Xinhua
