Cambodian ministry revises 2025 growth forecast down to 5%

26 Aug '25

2 min read

Cambodian ministry revises 2025 growth forecast down to 5%

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Insights

Cambodia's economy and finance ministry recently revised its economic growth forecast for this year down to 5 per cent citing the impact of US reciprocal tariffs and the closure of the Cambodia-Thailand land border that may continue till the yearend.
The country's economy was projected to grow by around 6.3 per cent earlier this year, and then by around 5.2 per cent.

Cambodia’s economy and finance ministry recently revised its economic growth forecast for this year down to 5 per cent citing the impact of US reciprocal tariffs and the closure of the Cambodia-Thailand land border that may continue till the yearend.

The country’s economy was projected to grow by around 6.3 per cent earlier. However, in April 2025, the medium-term public finance framework for 2026-2028 revised the projection downward to around 5.2 per cent due to the expected negative effects of countervailing duties on export-oriented industries.

In its mid-year report last week, the ministry projected that in the first six months of 2025, Cambodia’s economic growth would slow further to 5 per cent, according to a news agency.

The drop is partly attributed to the land border closure, which has disrupted production activities dependent on cross-border transportation of raw materials and exports, as well as the flow of international tourists traveling via land crossings.

US reciprocal tariffs will hinder the growth of key sectors that support the Cambodian economy.

The forecast says the industrial sector is expected to grow by 7.1 per cent this year, a slight slowdown compared to earlier projections.

But to ease potential challenges, the government must continue to introduce and implement appropriate policy responses in macroeconomics and public finance, the ministry emphasised.

Fibre2Fashion News Desk (DS)

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