Cambodia Economic Update, June 2025: Navigating Uncertainty
- Andrew Millar
- Aug 31
- 2 min read
World Bank
Report Description
20th June 2025 (PDF, 49 pages)
The World Bank’s Cambodia Economic Update, June 2025 edition, provides a timely and in-depth assessment of Cambodia’s macroeconomic developments, sectoral performance, and fiscal challenges, with a special focus on strengthening domestic revenues for future growth.
Summary
The report analyses Cambodia’s economic resilience in the face of global trade policy shifts and domestic vulnerabilities. It explores growth prospects, fiscal reforms and the implications for poverty reduction and investment opportunities:
Real GDP growth is projected at 4.0% in 2025, rising to 4.5% in 2026, reflecting slower manufacturing exports and global uncertainties.
Goods exports grew by 11.6% y/y in Q1 2025, with garments, travel goods and footwear driving expansion, although agriculture exports contracted.
International arrivals rose by 16.1% y/y, but tourism numbers remain below 2019 levels, underscoring a gradual recovery in services exports.
Domestic investment slumped, with approved QIP projects falling 96.7% y/y, reducing domestic investment to just 2.1% of total.
Non-Performing Loans (NPLs) increased sharply, reaching 7.9% in banking and 9.0% in microfinance by end-2024, highlighting financial stability concerns.
Public debt stood at 25.9% of GDP in 2024, considered low, while the fiscal deficit narrowed to 2.7% of GDP in 2025.
Revenue mobilisation reforms, including VAT and excise expansion, are critical to fund the government's Pentagonal Strategy and social spending priorities.
About Cambodia Economic Update
The Cambodia Economic Update is a biannual report produced by the World Bank since 2009.
It tracks macroeconomic performance, sectoral trends and policy developments in Cambodia.
Each edition provides forward-looking assessments of risks and opportunities for policymakers, investors, and development partners.
About the World Bank
The World Bank is a leading international financial institution dedicated to reducing poverty and supporting sustainable development across the globe.
In Cambodia, the World Bank has been a long-standing partner, providing policy advice, financing and analytical work to strengthen economic resilience, improve governance and support inclusive growth.