Synopsis: Cambodia is advancing steadily along the path of peace, democracy, and the rule of law, under the leadership of the government, guided by a clear vision, strong determination and broad public support.
Senate President and President of the Cambodian People’s Party (CPP) Hun Sen Saturday expressed confidence in Cambodia’s economic momentum during the first half of 2025, highlighting strong macroeconomic stability, low inflation, a stable riel, and rising international reserves.
He also projected that the Cambodian economy would achieve a growth rate of 5.2 percent for the year.
Addressing a mammoth gathering of 12,000 party members to commemorate the CPP’s 74th Founding Anniversary (June 28, 1951-2025), held at the January 7 Palace, Mr Hun Sen said that Cambodia is currently advancing steadily along the path of peace, democracy, the rule of law, and development under the leadership of the government, guided by a clear vision, strong determination and broad public support.
In fact, peace, stability, politics and security have been firmly protected, democracy, freedom and the rule of law have been constantly strengthened and promoted, the national economy continues to grow sustainably, people’s livelihoods are stable, reforms have been implemented with strong will and efficiency, and the social protection system has been developed with quality.
“Amid this positive progress, we can proudly observe the strong growth momentum of the Cambodian economy in the first half of 2025. Macroeconomic stability has been well maintained, inflation remains low, the value of the riel is stable, and international reserves continue to rise,” said Mr Hun Sen.
He further said that the Cambodian economy is projected to grow by 5.2 percent in 2025. In the first five months of the year, international trade reached $25.5 billion, an increase of 18 percent, with exports valued at $12.01 billion, up 17.98 percent compared to the same period in 2024.
During the first five months of this year, the Council for the Development of Cambodia (CDC) approved 290 investment projects, an increase of 137 projects compared to the same time last year.
These projects brought in approximately $4.2 billion in investment capital—up $1.4 billion—and are expected to generate around 200,000 jobs. The number of enterprises and establishments increased from 44,798 to 45,386, employing a total of 1.87 million workers, an increase of about 50,000.
Mr Hun Sen said that major infrastructure projects, including border facilities, irrigation systems, roads, bridges, electricity networks, canals, ports, airports, and information and communications technology (ICT) infrastructure are being actively promoted and expanded.
“These tangible achievements clearly demonstrate the Royal Government’s effective implementation of its commitments to the people,” he added.
Chey Tech, a socio-economic researcher, told Khmer Times, the Cambodian economy is indeed still growing, although the growth rate is lower than the forecast made at the end of 2024.
Nonetheless, the growth remains positive. However, it is slightly affected by rising inflation, which has been influenced by the prolonged war and renewed tensions in the Middle East.
He noted that Cambodia’s economic growth could face limitations, potentially stay around 5 percent or drop below that level. This will depend on the outcome of ongoing negotiations regarding US tariff rates.
“We expect that if the reciprocal tariffs are set as low as 10 percent, the Cambodian economy will continue to grow in the coming months. However, if the negotiations fail, the economy could contract to around 4 percent, with the potential for further decline in the following years once the tariff duty is fully implemented,” said Tech.
Tech indicated that the tariffs were initially scheduled to take effect on July 9, but that could be extended for another 90 days. “If the tariffs are delayed until the end of the year, I believe Cambodia’s economy see a growth rate of around 5.5 percent in 2025,” he said.
