The first female governor of the National Bank of Cambodia is optimistic about its ability to navigate global and domestic uncertainties and capitalize on pending reforms.
Global Finance: What are the growth and inflation forecasts for the remainder of 2025?
Shea Siri: Cambodia’s economy is expected to grow by about 5% in 2025 based on the latest government forecasts. During the first seven months, economic growth expanded strongly, although unevenly across sectors. Apparel exports rose 21.3% due to pre-orders ahead of US tariffs, while non-apparel exports rose 14%, benefiting from diversification policies, but this momentum may ease later this year. Meanwhile, tourism had steadily rebounded prior to the border dispute between Cambodia and Thailand, although modest growth is expected in the future.
Inflation is expected to reach 2.4% in 2025, driven by lower oil and food prices. Although the border closure disrupted trade between Cambodia and Thailand, the impact on inflation was marginal. Price stability is also due to exchange rate stability.
GF: The second and third subprogrammes of the “Inclusive and Sustainable Financial Development Programme” run until 2029. How will they impact change in Cambodia’s financial system?
Siri: The second and third subprogrammes will strengthen Cambodia’s financial system by improving stability, expanding access and supporting sustainable growth. We focus on financial literacy, consumer protection, and expanding access to digital and non-banking services – especially for women and disadvantaged groups. At the same time, we are introducing sustainable financing instruments and strengthening oversight to ensure long-term resilience. New financial products and market developments will help guide investment, increase liquidity and encourage the use of the riyal. 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 the financial landscape in Cambodia?
Siri: 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 promoting local currency payment. By July 2025, it had 70 member banking and financial institutions, bringing the number of its accounts to more than 34 million. As of 2024, Bakong has processed 600 million transactions worth $147 billion, about 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 People’s Democratic Republic, Korea and 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 leniency regime is lifted in December a major concern?
Siri: To ease debt burdens, loan restructuring has been provided to vulnerable groups and businesses affected by the COVID-19 pandemic and the ongoing border conflict. The rate of non-performing loans reached 8% in the second quarter of 2025. This figure is partly due to the sharp slowdown in credit growth to 2% under conditions of global and internal uncertainty. The company closely monitors adequate provisions and the overall performance of financial institutions due to the high percentage of non-performing loans. At the systemic level, financial institutions’ capital adequacy ratios remain strong with abundant liquidity. The national central bank will continue to monitor the debt burden 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 difficult and uncertain times such as the present.
