The first female governor of the National Bank of Cambodia is upbeat about its ability to navigate global and internal uncertainties and capitalize on pending reforms.
Global Finance: What is the outlook for growth and inflation for the remainder of 2025?
Chea Serey: Cambodia’s economy is projected to grow around 5% in 2025 based on the government’s latest projection. During the first seven months, economic growth expanded robustly, although uneven across sectors. Garment exports surged 21.3% due to front-loading orders ahead of US tariffs, while non-garment exports rose 14%, benefiting from diversification policies, but this momentum may ease later this year. Simultaneously, tourism recovered steadily before the Cambodia-Thailand border conflict, though modest growth is expected going forward.
Inflation is forecast at 2.4% in 2025, driven by the softening of oil and food prices. Despite the border closure disrupting Cambodia-Thailand trade, the impact on inflation has been marginal. Price stability is also attributed to the stable exchange rate.
GF: The second and third sub-programs of the “Inclusive and Sustainable Financial Development Program” run until 2029. How will they effect change in Cambodia’s financial system?
Serey: The second and third sub-programs will strengthen Cambodia’s financial system by improving stability, expanding access, and supporting sustainable growth. We are focusing on financial literacy, consumer protection, and wider access to digital and non-bank services—especially for women and underserved groups. At the same time, we’re introducing sustainable finance tools and enhancing oversight to ensure long-term resilience. New financial products and market developments will help channel investment, increase liquidity, and promote use of the riel. These reforms are key to building a modern, inclusive, and sustainable financial system for Cambodia’s future.
GF: How has the use of the Bakong altered Cambodia’s financial landscape?
Serey: Launched in October 2020, the blockchain-based Bakong system has transformed Cambodia’s financial sector by addressing payment platform interoperability, promoting financial inclusion, enhancing efficiency in payment systems, and strengthening payment in local currency. By July 2025, it had 70 banking and financial member institutions, reaching over 34 million accounts. As of 2024, Bakong processed 600 million transactions worth $147 billion, some three times the value of Cambodia’s GDP. The National Bank of Cambodia (NBC) continues its efforts to promote the usage of the Bakong system by partnering with regional countries like Malaysia, Thailand, Vietnam, Lao PDR, Korea, China, as well as Japan, and facilitating convenient digital payments for tourists via the new Bakong Tourists App.
GF: Is the threat of debt distress when the forbearance regime is lifted in December of great concern?
Serey: To ease debt burdens, loan restructuring has been provided to vulnerable groups and businesses impacted by the Covid-19 pandemic and ongoing border conflict. Non-performing loans (NPL) reached 8% as of Q2 2025; this number is partly due to the sharp slowdown in credit growth to 2% when faced with global and internal uncertainties. The NBC is monitoring closely the adequate provisioning and the overall performance of financial institutions because of this high NPL. On the systemic level, financial institutions’ capital adequacy ratios remain strong with ample liquidity. The NBC will continue to monitor debt overhang and maintain flexibility in its macroprudential policies. It is especially important for us to be a strong guardian of financial stability and support economic activity during challenging and uncertain times like right now.
