PHNOM PENH (Xinhua): Cambodia's economic growth is projected to slow to 4.3 percent in 2026 from 5.3 per cent in the year before, as higher global oil prices weigh on the economy, said an ASEAN+3 Macroeconomic Research Office (AMRO) press release.
AMRO's lead economist Jinho Choi said that to manage heightened uncertainties and repeated shocks, proactive policies and effective implementation will be essential, including targeted fiscal support to vulnerable households and firms affected by the energy shock and the border conflict.
"Despite heightened uncertainty surrounding U.S. reciprocal tariffs, Cambodia's economy grew steadily in 2025, supported by strong garment exports, steady foreign direct investment (FDI) inflows, and swift policy responses," he said. "Looking ahead, proactive and targeted policy support, together with structural reforms, will be important to sustain medium-term growth."
Inflation averaged 2.5 percent in 2025 but is expected to rise to 3.9 percent in 2026 due to higher global oil prices, the press release said.
The current account shifted to a deficit of 3.6 percent of GDP in 2025 and is projected to widen further to 8.5 percent of GDP in 2026, reflecting higher energy imports, weaker tourism receipts, and a sharp decline in remittances following the return of migrant workers from Thailand, it said, adding that, meanwhile, FDI inflows remained resilient.
High oil prices remain the most immediate external risk, the press release said, adding that slower growth in major trading partners, driven by spillovers from the Middle East conflict or renewed trade protectionism, could further weaken exports and investment.
Banking sector vulnerabilities have increased amid rising non-performing loans and recent bank liquidations, the press release said.â- __ChkhgeE000009_20260501
