A bird’s-eye view of Phnom Penh, the capital of Cambodia. Early estimates suggest that the Kingdom’s economic progress will see GDP per capita figures rise by 40 per cent in 2025. Post Staff
According to the Office of the Council of Ministers, Cambodia's gross domestic product (GDP) per capita in 2025 is expected to swell to nearly 3,000 USD, reflecting an increase of more than 40% over the projected 2024 figures, while economic growth is expected to reach 6.3%.
An October 25 press release from the cabinet indicated that, based on the government’s medium-term public financial framework assessment, the Kingdom’s economic growth rate for 2025 is forecast at 6.3%. This would bring the current GDP to approximately 209,163 billion riel, equivalent to about $51.398 billion, while per capita GDP is expected to rise to $2,924.
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The release anticipated that the 6.3% growth rate will be supported by key economic sectors, with the industrial sector projected to grow by 8.6%, the service sector by 5.6% and the agriculture sector by 1.1%.
Meanwhile, inflation is expected to remain at around 2.5%, with the social sector continuing to be prioritised.
The Budget in Brief Fiscal Year 2024, published in late 2023, stated: “According to projections, Cambodia's economy in 2024 is expected to recover and achieve growth of around 6.6%, raising the current GDP to approximately 142,957 billion riel, equivalent to about %35.168 billion, with per capita GDP expected to rise to $2,071, compared to $1,917 in 2023.”
The draft of the Budget in Brief Fiscal Year 2025, approved by a full session of the Council of Ministers on October 25, will go through several additional procedures before being formally accepted and published.
The growth of GDP per capita for 2025 is being hailed as a positive step for Cambodia, as it moves towards shedding its status as a least developed country by 2029.
Economist Duch Darin told The Post on October 28 that the anticipated increase in GDP per capita is due to continuous economic development, driven by strong exports, growth in tourism, public investment and the participation of the private sector. He noted that the government Cambodia continues to be focused on maintaining macroeconomic stability and promoting sustainable growth.
“In my personal opinion, the projected increase in average income is achievable, as international institutions such as the International Monetary Fund have made similar forecasts. Additionally, Cambodia continues to invest in infrastructure, human resources, digital technology and creating a favourable investment environment, along with increased exports, particularly in the textile sector, such as garments, travel goods, and footwear, as well as the recovery of the tourism sector,” he added.
Visitors inspect a tyre manufacturing facility in Cambodia. Several similar factories have been established in recent times, making a significant contribution to the Kingdom’s economic growth. Supplied
Darin explained that Cambodia’s GDP per capita is expected to grow due to an increase in total GDP, as the country is on a path of growth in industrialisation, tourism, financial services, the service sector and agriculture. At the same time, the Kingdom is prioritising quality and quantity improvements in education and healthcare, integrating a skilled workforce that supports long-term economic productivity.
“Focusing on institutional reforms, economic diversification and human development will enhance the resilience of the national economy and continue to drive sustainable and inclusive economic growth,” he added.
“Economic activity in 2024 remains robust despite global challenges, with key indicators like inflation remaining stable. For 2025, economic improvement is expected, with inflation forecasted to be around 2.5%, creating a stable environment for consumers and investors, and ensuring purchasing power remains strong,” he continued.
He added that the Cambodian government’s commitment to infrastructure development and active investment policies is likely to attract both domestic and international investors, which will further stimulate economic activity.
In a recent discussion on TVK Cambodia, secretary of state for the Ministry of Economy and Finance Phan Phalla highlighted that despite numerous global political and economic challenges in 2024 – including residual inactivity from the Covid-19 crisis, the ongoing Russia-Ukraine conflict, tensions in the Middle East and geopolitical disputes among various countries – Cambodia's economy has continued to make commendable progress.
“Since the formation of the [seventh mandate government], Cambodia has pursued an open economy, relying significantly on foreign markets,” he said.
“Nonetheless, in 2024, the overall economic conditions for Cambodia have shown improvement compared to 2023,” he added.
Data from the General Department of Customs and Excise (GDCE) shows that in 2023, Cambodia’s international trade reached a total of $46.83 billion, a decrease of 1.9% compared to 2022. Of this, exports were valued at $22.64 billion, up by 1.8%, while imports were down 5%, at $24.18.
In the first nine months of 2024, international trade volume reached $40.94 billion, marking a 16.4% increase compared to the same period in 2023. During this period, exports totalled 19.83 billion USD, up 17%, while imports were $21.11 billion, up15.9%.
