AMRO Annual Consultation Report, Cambodia 2025
- Andrew Millar
- Aug 30
- 2 min read
Updated: Aug 31
AMRO
Report Description
5th August 2025 (PDF, 70 pages)
This report from the ASEAN+3 Macroeconomic Research Office (AMRO) provides a comprehensive macroeconomic assessment of Cambodia’s current economic landscape, risks and policy directions. It analyses recent growth trends, financial sector developments, fiscal dynamics and structural challenges.
Summary
Prepared following AMRO’s Annual Consultation Mission in April 2025, the guide assesses growth prospects, vulnerabilities and resilience-building strategies. It highlights external pressures, financial stability issues and fiscal consolidation needs while offering policy recommendations:
Economic growth slowed to 5.2% in 2025 and is forecast at 4.7% in 2026, reflecting the impact of new US tariffs at 36%.
The garment sector, accounting for one-third of GDP, faces the sharpest decline, with growth halved compared to 2024.
Inflation volatility persists, largely driven by imported food prices; headline CPI is expected to reach 2.5% in 2025 before moderating to 2.3% in 2026.
The current account balance is shifting from a 0.5% of GDP surplus in 2024 to a projected 5.4% deficit by 2026.
Non-performing loans (NPLs) rose to 7.8% in March 2025, raising risks for bank profitability and capital adequacy.
Public debt is projected to rise to 29.1% of GDP by 2029, underlining the need for gradual fiscal consolidation and improved revenue mobilisation.
Structural challenges include LDC graduation in 2029, loss of trade preferences, climate change and the need for stronger policy coordination.
About AMRO Annual Consultation Report
The Annual Consultation Report series is produced by AMRO to monitor and evaluate the macroeconomic conditions of its ASEAN+3 member economies.
AMRO began producing country-level surveillance reports shortly after its establishment in 2011, and Cambodia has been covered regularly since then.
Each report is based on in-country consultation missions with government agencies, regulators and stakeholders, and provides independent assessments of economic developments, risks and policy challenges.
About AMRO
The ASEAN+3 Macroeconomic Research Office (AMRO) is an international organisation, headquartered in Singapore, established to support macroeconomic and financial resilience and stability in the ASEAN+3 region.
It operates as an independent research and surveillance unit, supporting the Chiang Mai Initiative Multilateralisation (CMIM), a regional liquidity and financial stability mechanism.
AMRO serves 14 member economies: the 10 ASEAN countries, plus China, Hong Kong (China), Japan and South Korea, and carries out several core functions, including macroeconomic surveillance, CMIM-related support, technical assistance, annual consultation reports, policy advice and operating as a regional knowledge hub.