PHNOM PENH: Cambodia has further downgraded its 2026 GDP growth forecast to 4.1 per cent, down from a 4.2 per cent projection in May and an initial estimate of five per cent.
The revised figures were published in a mid-year review report released by the Ministry of Economy and Finance on Wednesday (Aug 19).
According to the report, the economic slowdown stems from rising fuel prices driven by conflicts in the Middle East, the border dispute with Thailand, and the persistent impact of online scam issues.
Cambodia's economy relies heavily on agriculture, tourism, real estate, construction and the export of garments, footwear and travel goods.
The overall growth, slightly lower than expected, is due to lower-than-expected growth in agriculture and tourism, and a slight slowdown in the garment sector, the report said.
Conversely, the wholesale-retail, finance and construction-real estate sectors remain on track with initial forecasts, the report said, adding that the export-driven non-garment manufacturing sector was a bright spot, with upward revisions expected to bolster the country's overall economic performance through the remainder of 2026. - Xinhua
