Cambodia's real GDP to grow from 5.5% in 2024 to 5.8% in 2025: IMF

Inflation is estimated to pick up from 0.5 per cent in 2024 to 2 per cent this year and remain contained, IMF said after concluding its Article IV consultation with the country.

The country’s economy has continued to recover, albeit at a modest pace, it noted in a release.

However, risks to the outlook are tilted to the downside from both external factors and domestic vulnerabilities, including from policy changes by major trading partners, geoeconomic fragmentation and continued weakness in the construction and real estate sectors.

The recovery remains uneven. Real GDP growth is driven mainly by external demand, with a strong rebound in garment exports and high growth in agricultural exports.

“We project the fiscal deficit at 2.4 per cent of GDP in 2025, down from 3 per cent in 2024, with a gradual fiscal consolidation envisaged in the medium-term fiscal framework. Public debt remains well-contained, staying below 30 per cent of GDP over the next decade,” IMF said.

The current account balance is projected to swing back to a deficit of 1.8 per cent of GDP in 2024 as strong demand for imports outpaces the recovery in exports and tourism. The deficit is projected to increase somewhat this year, reaching 2.5 per cent of GDP, with export growth expected to moderate.

ALCHEMPro News Desk (DS)