Cambodia’s Economy Projected to Grow 4.8% in 2025

PHNOM PENH, Cambodia (Dec. 11, 2025) — Cambodia’s economy is projected to grow 4.8 percent in 2025, down from 6 percent last year, as property market weakness, border disruptions and new trade restrictions weigh on activity, the World Bank said Thursday.

The Bank’s Cambodia Economic Update: Coping with Shocks warns that prudent fiscal and monetary policies, combined with targeted structural reforms, will be essential to cushion the slowdown and reinforce resilience.

“Strong buffers and targeted reforms can help the country withstand these economic pressures,” said Tania Meyer, World Bank country manager. She stressed the need to protect vulnerable households, improve the business environment and support informal enterprises to unlock growth and create better jobs.

Cambodia enters this period with solid macroeconomic buffers: international reserves covering 7.5 months of imports, public debt at 26 percent of GDP, and inflation contained at 2.7 percent. Foreign direct investment inflows reached $2.3 billion in the first half of 2025, up 28 percent year‑on‑year.

Looking ahead, Cambodia’s National Assembly has approved a $10 billion budget for 2026, prioritizing defence, security, and flagship development programs under the Pentagonal Strategy. Officials say the plan underscores the government’s commitment to stability and long‑term growth despite mounting pressures.