Cambodia projects 5% growth for 2026 amid external headwinds

Cambodia projects 5% growth for 2026 amid external headwinds

Cambodia’s economy is forecast to grow by 5% in 2026, a slight moderation from the 5.2% projected for 2025, as the kingdom navigates external shocks and ongoing border complexities with Thailand.

Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth announced the figures yesterday at a road inauguration ceremony in Kandal province. He projected that the national gross domestic product (GDP) would reach $53.8 billion in 2026, with GDP per capita rising to $3,020.

“Cambodia’s economy has recovered rapidly and sustained strong growth momentum following the global COVID-19 crisis,” Pornmoniroth said. He noted that this resilience persists despite “high uncertainties” in the global landscape, citing increased geopolitical confrontations, global economic fragmentation, and a resurgence of unilateralism as primary challenges.

The kingdom’s economic stability remains heavily anchored in its core sectors: garment, footwear, and travel goods exports, as well as tourism, agriculture, and real estate. However, experts suggest that a strategic shift is necessary to sustain this trajectory.

Kin Phea, the director general of the International Relations Institute of Cambodia, emphasised that the government should now prioritise high-value sectors.

“To maintain robust momentum, Cambodia must focus on agricultural technology, renewable energy, logistics, and digital services,” Phea said. He added that investing in human capital—specifically in innovation and research—will be critical to building long-term competitiveness and cushioning the economy against future external volatility. Strengthening food and energy security also remains a top priority for domestic resilience. 

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