Despite challenges including border tensions with Thailand, construction sector weakness, and rising non-performing loans, Cambodia’s economy is projected to expand by 5.2 percent in 2025, according to the National Bank of Cambodia’s assessment to the IMF Article IV Mission Team.
- Budget deficit projected to narrow to 4% of GDP in 2025, from 3% in 2024
- Public debt expected to remain below 30% of GDP over the next decade
- Current account deficit forecast to widen from 8% of GDP in 2024 to 2.5% in 2025
Cambodia’s credit-to-GDP ratio surged from 24% in 2010 to 135% in 2023. However, Cambodia faces external risks from slower global growth and weaker demand from major trading partners. Domestically, challenges include high dollarisation, limited diversification beyond garments and agriculture, reliance on weather-dependent agriculture, ongoing construction and real estate weakness, and sluggish credit growth with rising non-performing loans.
Source: IMF reviews Cambodia’s steady, resilient economy – Khmer Times