Cambodia Investment Review
Cambodia’s economy is forecasted to grow by 6.3% in 2025, signaling a return to pre-pandemic economic expansion. The announcement came during the 45th Convention of the Fifth Term Central Committee of the Cambodian People’s Party (CPP), which concluded a two-day session in Phnom Penh. This projection follows a 6% growth rate achieved in 2024, underscored by low inflation at 0.8% and a stable exchange rate of 4,071 riels per US dollar.
The robust performance reflects the country’s resilience amid global uncertainties, supported by sustained investments in infrastructure, tourism recovery, and export growth in key sectors such as garments and agriculture.
Improved Living Standards and Social Progress
Economic improvements have directly impacted the standard of living, with GDP per capita increasing from $2,520 in 2023 to approximately $2,713 in 2024. Enhanced employment stability and a strengthened social security framework have also contributed to better living conditions for factory workers and employees. Minimum wages for 2025 have been set at $208 per month, with additional benefits raising potential earnings to between $225 and $236 monthly.
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The Cambodian government continues to implement the ‘National Social Protection Policy Framework 2016-2025,’ reinforcing its commitment to public welfare and improved working conditions.
Cambodia’s economic outlook has drawn favorable attention from international financial institutions. Regional and global lenders, including the Asian Development Bank, project continued growth, with inflation expected to remain stable at around 2% in 2025. The World Bank, while slightly less optimistic, predicts a 5.4% growth rate for the same year.
The government’s focus on infrastructure development, export expansion, and tourism recovery has laid a solid foundation for economic stability. Significant international reserves, amounting to $22.511 billion and covering approximately seven months of imports in 2024, further strengthen the economic landscape.
Progress Towards Middle-Income Status
The CPP highlighted Cambodia’s strides toward economic progress, with the United Nations assessing the country’s readiness to exit the least developed country status by 2029. Ongoing initiatives to attract sustainable investment, coupled with support from international development partners, are pivotal to maintaining growth momentum.
While global uncertainties pose challenges, Cambodia’s forward-looking policies and strategic investments are expected to drive continued socio-economic development, ensuring macroeconomic stability and improved public welfare in the years ahead.
