Growth, Stability & Digital Finance

The first female governor of the National Bank of Cambodia is optimistic about her ability to navigate global and domestic uncertainties and take advantage of ongoing reforms.

Global finance: what are the growth and inflation prospects for the rest of 2025?

Chea Serey: Cambodia’s economy is expected to grow by around 5% in 2025, according to the latest government projections. During the first seven months, economic growth grew robustly, although unevenly across sectors. Apparel exports jumped 21.3% due to advance orders ahead of U.S. tariffs, while non-apparel exports rose 14%, benefiting from diversification policies, but that momentum could ease later this year. At the same time, tourism recovered steadily before the Cambodia-Thailand border conflict, although modest growth is expected in the future.

Inflation is forecast at 2.4% in 2025, driven by falling oil and food prices. Despite the border closure disrupting trade between Cambodia and Thailand, the impact on inflation was marginal. Price stability is also attributed to exchange rate stability.

GF: The second and third sub-programs of the “Inclusive and Sustainable Financial Development Program” extend until 2029. How will they affect change in the Cambodian financial system?

Serey: The second and third subprograms will strengthen Cambodia’s financial system by improving stability, expanding access and supporting sustainable growth. We focus on financial literacy, consumer protection and broader access to digital and non-banking services, particularly for women and underserved groups. At the same time, we are introducing sustainable finance tools and strengthening monitoring to ensure long-term resilience. New financial products and market developments will help channel investments, increase liquidity and promote the use of the riel. These reforms are essential to building a modern, inclusive and sustainable financial system for Cambodia’s future.

GF: How has the use of Bakong changed Cambodia’s financial landscape?

Serey: Launched in October 2020, the blockchain-based Bakong system has transformed the Cambodian financial sector by addressing the interoperability of payment platforms, promoting financial inclusion, improving the efficiency of payment systems, and strengthening payment in local currency. As of July 2025, it had 70 member banking and financial institutions, representing more than 34 million accounts. In 2024, Bakong processed 600 million transactions worth $147 billion, approximately three times the value of Cambodia’s GDP. The National Bank of Cambodia (NBC) continues its efforts to promote the use of the Bakong system by partnering with regional countries such as Malaysia, Thailand, Vietnam, Lao PDR, Korea, China and Japan, and facilitating convenient digital payments for tourists through the new Bakong Tourists app.

GF: Is the threat of over-indebtedness when the forbearance regime is lifted in December very worrying?

Serey: To ease the debt burden, loan restructuring has been offered to vulnerable groups and businesses affected by the Covid-19 pandemic and the ongoing border conflict. Non-performing loans (NPL) reached 8% in the second quarter of 2025; this figure is partly explained by the sharp slowdown in credit growth, to 2%, in the face of global and internal uncertainties. The NBC closely monitors the adequate provisioning and overall performance of financial institutions due to this high level of NPL. At the systemic level, the capital ratios of financial institutions remain strong and with abundant liquidity. The BNC will continue to monitor debt overhang and maintain some flexibility in its macroprudential policies. It is particularly important for us to be strong guardians of financial stability and to support economic activity in difficult and uncertain times like the one we are currently experiencing.