Cambodia lowers 2025 growth forecast to 5% amid border closure and US tariffs
Cambodia has revised its economic growth forecast for 2025 down to 5% from the earlier estimate of 6.3%, the Ministry of Economy and Finance said in a mid-year report released on Saturday.
According to the Khmer Times, the downgrade reflects the negative impacts of the ongoing closure of the land border with Thailand and the 19% tariff recently imposed by the United States on Cambodian exports.
“Cambodia’s economic growth will slow down to 5%, partly due to the impact of land border closure, which has disrupted manufacturing activities, transportation of raw materials, and exports, as well as flows of international tourists,” the report said.
“The implementation of US reciprocal tariffs will hinder growth in key sectors that support Cambodia’s economy, such as garments and non-garment manufacturing products of furniture, tyres, and electronic components to the US market,” it added.
Cambodia’s economy remains heavily dependent on garment, footwear and travel goods exports, alongside tourism, agriculture, real estate and construction.
For 2025, the report projected growth of 7.1% in the industrial sector, 3.8% in services and 0.9% in agriculture.
