Phnom penh: Cambodia is projected to achieve a 5 percent economic growth in 2025, down from 6 percent in 2024, Permanent Deputy Prime Minister Vongsey Vissoth announced here on Thursday. The revised growth forecast comes in response to challenges including a border conflict with Thailand and a 19-percent tariff imposed by the United States on Cambodian exports.

According to Namibia Press Agency, the tariff, effective from August 1, has significantly impacted Cambodia's economic outlook. Despite these hurdles, the country's GDP per capita is expected to reach nearly 3,000 U.S. dollars in 2025, an increase from 2,713 dollars in 2024 and 2,520 dollars in 2023.

Cambodia's economy heavily depends on exports of garments, footwear, and travel goods, along with tourism, agriculture, and real estate and construction sectors. A report from the Ministry of Economy and Finance projects that the industrial sector, focusing on garment and non-garment manufacturing and construction, will grow by 7.1 percent in 2025. The service sector, which includes tourism, transport, telecom, trade, and real estate, is expected to increase by 3.8 percent, while agriculture is projected to rise by 0.9 percent.