PHNOM PENH: Cambodia is expected to maintain a steady economic growth trajectory in 2025 and 2026, driven by external demand for manufactured goods and the continued recovery in the tourism sector, said an Asian Development Bank (ADB) economic report released on Wednesday (April 9).
The report estimated Cambodia's gross domestic product will expand by 6.1 per cent in 2025 and 6.2 per cent in 2026 after growing by 6 perc ent in 2024.
However, downside risks to the outlook have increased due to global uncertainties, including a new tariff policy by the United States and ongoing geopolitical tensions affecting supply chains.
"The positive economic outlook for Cambodia in 2025 and 2026 reflects the country's potential for resilience and underlying strengths," ADB Country Director for Cambodia Jyotsana Varma said in a press release.
"Even as global uncertainties persist, strategic investments in digital public infrastructure and human capital development will be crucial for economic diversification and unlocking new drivers for inclusive and sustainable growth," she added.
Industrial output is projected to rise by 9.3 per cent in 2025 and 2026, led by robust performance in garment and non-garment manufacturing, the report said.
Growth in the services sector is expected to continue at 4.4 per cent, despite weak real estate activity, it said, adding that tourism earnings are projected to grow moderately, with international tourist arrivals --especially from South-East Asia -- continuing to rise.
The report also identifies digital transformation as a key policy priority to support long-term growth. - Xinhua
