Here is an overview of the latest developments in Cambodia's economy

Here is an overview of the latest developments in Cambodia's economy:

Economic Growth Projections

Cambodia's economy is projected to grow by 6.3% in 2025, reaching a gross domestic product (GDP) of $51.39 billion. KHMERTIMESKH.COM This growth rate aligns with pre-pandemic levels, supported by stable inflation and a steady exchange rate. ASEANBRIEFING.COM International Assessments The International Monetary Fund (IMF) projects Cambodia's real GDP to grow from 5.5% in 2024 to 5.8% in 2025, with inflation expected to rise from 0.5% to 2% during the same period. The IMF notes that risks to this outlook include external factors and domestic vulnerabilities, such as policy changes by major trading partners and weaknesses in the construction and real estate sectors. IMF.ORG Similarly, the Asian Development Bank (ADB) maintains its growth forecast for Cambodia at 5.8% for 2024 and 6.0% for 2025. The ADB has revised its 2024 inflation projection down from 2.0% to 0.5%, citing slow increases in food prices and declining fuel prices in the first half of 2024. ADB.ORG

Sectoral Developments

Aviation: Cambodia's aviation sector experienced a significant uptick in 2024, with the country's three international airports handling a combined 4.5 million passengers from January to September, marking a 22% increase compared to the same period last year. KHMERTIMESKH.COM Agriculture: Leading Cambodian rice exporters showcased their products at the Salon International de l'Alimentation (SIAL) Paris 2024, attracting international attention from European and other foreign buyers. KHMERTIMESKH.COM

Energy Infrastructure

To enhance energy security, Cambodia plans to boost its power import capacity by over 50% within the next two years. The country aims to secure more than 600 megawatts (MW) from neighboring countries, including 300 MW of solar and hydroelectric power from Laos starting in 2026, with nearly double that capacity expected from Vietnam. REUTERS.COM

Environmental and Social Challenges

The suspension of U.S. foreign assistance has significantly hindered efforts against human trafficking in Cambodia. Organizations like Caritas have reduced support for victims due to funding cuts, affecting rescue missions and shelter operations critical for rehabilitation. APNEWS.COM Additionally, Cambodian fishermen are turning to eel farming as the Tonle Sap lake faces severe depletion of fish stocks due to climate change, upstream dams, and deforestation. This shift aims to stabilize income and foster economic growth through increased exports, as traditional fishing becomes unsustainable. APNEWS.COM