Cambodia’s economic growth is projected to reach 6.2 per cent in 2025, with inflation remaining at a moderate level of 2.6 per cent, according to the latest annual report released by the National Bank of Cambodia (NBC) on Monday.

According to the report, economic activity will continue to be bolstered by the growth of garment exports and the expansion of non-garment products.

The NBC highlighted uncertainties surrounding US protectionist policies, weaker-than-expected regional and global economic growth, instability in international financial markets, and the slowdown of China’s economy. China’s economic deceleration could significantly impact Cambodia by reducing investment and tourism inflows.

The report also warned about the potential effects of Cambodia’s graduation from Least Developed Country (LDC) status. This transition could lead to the loss of certain trade privileges and foreign financing sources, adding pressure to the country’s economic growth.

The NBC’s projections surpass forecasts by international financial institutions. The World Bank anticipates Cambodia’s Gross Domestic Product (GDP) to grow by 5.5 per cent, while the Asian Development Bank (ADB) estimates a 6.0 per cent growth for the year.

Moreover, the Budget in Brief report for the fiscal 2025 by the Ministry of Economy and Finance projected the country’s economy to grow by 6.3 per cent, aligning with the NBC’s forecast. The report estimates GDP at current prices to reach approximately 209.16 trillion riels ($51.39 billion), with GDP per capita expected to rise to $2,924.

“This growth will be primarily supported by an increase in exports, tourism, and foreign direct investment flows, said Chea Serey, Governor of NBC.

“In line with economic growth and changes in international financial regulation, strengthening governance, risk prevention, and maintaining business sustainability, along with human resource development, gender promotion, and internal structural adjustments, are critical for the long-term development of NBC,” Serey added.