Chunyu Yang | AMRO+3 Regional Economic Outlook 2025
Cambodia has made notable strides in advancing gender-inclusive economic growth over the past decade, particularly through the expansion of its manufacturing sector. However, significant challenges remain in addressing the lingering gaps in wage equality, informal employment, and financial inclusion—areas that are crucial to unlocking the country’s full economic potential in the post-pandemic era.
These insights are drawn from the 2025 ASEAN+3 Regional Economic Outlook (AREO) report published by the ASEAN+3 Macroeconomic Research Office (AMRO), with this analysis contributed by Chunyu Yang.
Cambodia’s Economic Growth and Female Participation
Between 2010 and 2019, Cambodia recorded one of the fastest growth rates in ASEAN+3, averaging 7.6% annually. This expansion was largely driven by strong foreign direct investment (FDI) in manufacturing, especially in garments, textiles, and footwear—industries that now contribute more than 70% of Cambodia’s total exports. According to International Labour Organization data, over one million workers are employed in the sector, with women making up nearly 80% of the workforce.
Read More: Opinion – How Can Cambodia Keep Women in the Workforce After its LDC Graduation in 2029?
This wave of industrial growth coincided with significant improvements in female labor participation and wage equality. From 2009 to 2019, Cambodia’s gender wage gap narrowed, with women earning 82% of male wages, up from 73% a decade earlier. Education also improved notably during this period: as of 2022, a higher proportion of girls (67.5%) than boys (57.1%) complete lower secondary school—an achievement that outpaces regional averages in East Asia and the Pacific.
These achievements reflect a broader trend seen in global studies, where higher female labor force participation is linked to stronger economic growth and greater financial stability. Economists have pointed to benefits such as improved resource allocation, reduced gender gaps in education, and greater innovation, which collectively support increases in total factor productivity (TFP).
Post-Pandemic Challenges and Gender Disparities
Despite the encouraging progress, the COVID-19 pandemic exposed and, in some cases, widened gender-based vulnerabilities in Cambodia’s economy. During the pandemic years (2020–2022), the country experienced a reduction of 1.95 percentage points in potential growth, with declines in human capital and productivity each contributing around 0.5 percentage points. Women were disproportionately impacted, especially those in tourism and service sectors, where female employment is concentrated.
Cultural norms also contributed to unequal pandemic burdens, with many women taking on additional domestic responsibilities. In the labor market, gender disparities persist: women remain overrepresented in vulnerable employment, including unpaid family work and informal self-employment. While the overall vulnerable employment rate for women has declined, the gender gap has in fact widened, reflecting slower recovery among women.
Meanwhile, in financial inclusion, Cambodian men continue to outpace women in holding bank accounts and using digital payments. This limits women’s ability to fully participate in the formal economy and benefit from digital financial services—a growing area of importance in a modernizing economy.
Government and Institutional Responses
The Cambodian government has responded with a number of gender-focused initiatives. The Ministry of Women’s Affairs (MoWA) and the Cambodian National Council for Women have been leading efforts to integrate gender across policy planning. Each line ministry is now required to adopt Gender Mainstreaming Action Plans (GMAPs) specific to their sectors.
Looking ahead, the government is drafting a national gender equality policy for the next decade, alongside a roadmap for introducing gender-responsive budgeting—a mechanism aimed at embedding gender considerations in fiscal policy.
Additionally, the Cash Transfer Program for Pregnant Women and Children, launched in 2019, has disbursed USD 10 million in social protection stipends to over 170,000 beneficiaries to date. This program has provided critical support to vulnerable households and served as a foundation for future social safety net expansions.
Policy Outlook: Toward Inclusive Growth
To sustain and expand the gains of gender-inclusive development, policymakers are being encouraged to take a more integrated approach. Incorporating gender considerations into fiscal, monetary, financial, and structural reforms can yield broader macroeconomic benefits. Evidence from other countries shows that narrowing gender gaps can enhance financial resilience, increase innovation, and improve the stability of financial institutions.
Development partners, including the International Monetary Fund, continue to support Cambodia through policy surveillance, technical assistance, and capacity development focused on inclusive growth.
As highlighted in the AMRO+3 AREO 2025 report, bridging remaining gender gaps—particularly in informal employment and financial access—will be critical to lifting Cambodia’s long-term growth potential and ensuring that its recovery from the pandemic is both resilient and equitable.
