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Cambodia lowers growth forecast to 4.2% amid regional instability

3h ago
05-05-2026 09:25:28+07:00

Cambodia lowers growth forecast to 4.2% amid regional instability

Cambodia has revised its 2026 economic growth forecast to 4.2%, down from an initial 5%. Prime Minister Hun Manet attributed the revision to soaring oil and gas prices, driven by instability in the Middle East and ongoing border friction with Thailand.

 

“The sharp increase in energy costs has driven inflationary pressures, affecting our growth trajectory,” the Prime Minister said in the medium-term public financial framework report released yesterday. The outlook forecasts a recovery to 5% in 2027, with a medium-term average of 5.5% through 2029.

Cambodia’s economy remains heavily dependent on exports of garments, footwear, and travel goods, as well as on tourism, agriculture, and construction. Officials warned that sustained global volatility could further affect these key pillars. 

khmertimeskh

- 08:23 05/05/2026

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