Cambodia Economic Outlook
A fast-growing economy:
Cambodia has been one of the fastest-growing economies in Asia over the past two decades, averaging GDP growth of around 7% annually before the COVID-19 pandemic. The country’s economy is driven by manufacturing, particularly garment exports, tourism, construction, and agriculture. However, despite rapid economic expansion, Cambodia remains one of Southeast Asia’s poorest nations, with significant income inequality and a heavy reliance on foreign investment.
Manufacturing and exports:The garment industry is Cambodia’s largest export sector, accounting for over 70% of total exports. The country benefits from low labor costs and preferential trade agreements with the EU and U.S., although concerns over labor rights have led to periodic trade restrictions. The tourism sector, centered around Angkor Wat, has also been a major contributor to growth, though it suffered severe setbacks during the COVID-19 pandemic.
Foreign investment and infrastructure:Cambodia has attracted significant foreign direct investment (FDI), particularly from China, which is financing major infrastructure projects under the Belt and Road Initiative. However, rapid Chinese investment has also raised concerns about debt sustainability and economic overreliance on Beijing. The country’s financial sector has grown rapidly, but banking regulations remain weak, raising risks of financial instability.
Cambodia economic outlook:Cambodia’s economy is expected to recover from the pandemic-induced slowdown, with strong growth prospects in manufacturing, tourism, and infrastructure. However, challenges such as corruption, weak governance, and growing public debt could hinder long-term development. Sustainable growth will require economic diversification, improved education, and regulatory reforms.
Cambodia's Macroeconomic Analysis:
Nominal GDP of USD 42.3 billion in 2023.
Nominal GDP of USD 42.3 billion in 2023.
Nominal GDP of USD 42.3 billion in 2023.
GDP per capita of USD 2,489 compared to the global average of USD 10,589.
GDP per capita of USD 2,489 compared to the global average of USD 10,589.
GDP per capita of USD 2,489 compared to the global average of USD 10,589.
Average real GDP growth of 5.9% over the last decade.
Average real GDP growth of 5.9% over the last decade.
Average real GDP growth of 5.9% over the last decade.
Sector Analysis
In 2022, services accounted for 33.4% of overall GDP, manufacturing 18.3%, other industrial activity 26.8%, and agriculture 21.5%. Looking at GDP by expenditure, private consumption accounted for 41.8% of GDP in 2023, government consumption 8.1%, fixed investment 16.0%, and net exports 34.1%.International trade
In 2022, manufactured products made up 90.8% of total merchandise exports, mineral fuels 0.0%, food 4.8%, ores and metals 1.1% and agricultural raw materials 2.2%, with other categories accounting for 1.1% of the total. In the same period, manufactured products made up 62.3% of total merchandise imports, mineral fuels 12.1%, food 6.1%, ores and metals 3.0% and agricultural raw materials 1.4%, with other goods accounting for 15.1% of the total. Total exports were worth USD 23.60 billion in 2023, while total imports were USD 26.60 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 5.9% in the decade to 2023. To read more about GDP growth in Cambodia, go to our dedicated page.
Fiscal policy
Cambodia's fiscal deficit averaged 1.2% of GDP in the decade to 2023. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 0.3% in the decade to 2023. For more information on Cambodia's unemployment click here.
Inflation
Inflation averaged 2.7% in the decade to 2024. Go to our Cambodia inflation page for extra insight.
Exchange Rate
From end-2014 to end-2024 the riel strengthened by 1% vs the U.S. dollar. For more info on the riel, click here.
Economic situation in Cambodia
Cambodia likely notched a sharper pace of GDP expansion in 2024, outpacing much of ASEAN to become the region’s second-fastest growing economy, according to our panelists. Easing inflation and a firmer riel gave households more spending power, and free-trade agreements helped supercharge the external sector. Heading into 2025, our panel expects the economy to lose momentum. Inflation hit a near three-year high in Q1, and tourist arrivals growth plummeted in January–April compared to 2024. On the flipside, goods export growth gained steam in January–May compared to last year’s average, boosted by front-loaded sales ahead of U.S. tariffs. In other news, tensions with Thailand briefly spiked in late May over a border dispute. Calm was quickly restored, but renewed unrest could weigh on employment, trade and tourism, as Thai nationals make up roughly 28% of total tourist arrivals.Cambodia Economic Forecasts
Projections out to 2034.42 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 9 expert analysts.
Want to get insight on the economic outlook for Cambodia in the coming years? FocusEconomics collects projections out to 2034 on 42 economic indicators for Cambodia from a panel of 9 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Cambodia economy. To download a sample report on the Cambodia's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.