PHNOM PENH, Aug. 23 (Xinhua) -- Cambodia has revised down its economic growth forecast to 5 percent in 2025 from an earlier prediction of 6.3 percent, the Ministry of Economy and Finance said in a mid-year report on Saturday.
The slowdown was due to the negative impacts of the closure of land border between Cambodia and Thailand and a 19 percent tariff imposed by the United States on Cambodian exports.
"Cambodia's economic growth will slow down to 5 percent, 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 U.S. 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 U.S. market," it added.
The Southeast Asian nation's economy mainly relies on garment, footwear, and travel goods exports, tourism, agriculture, and real estate and construction.
The report said for 2025, the industrial sector was forecast to grow 7.1 percent, the service sector at 3.8 percent and agriculture at 0.9 percent. ■
