Cambodian economy resilient but reforms needed, AmCham says

PHNOM PENH, March 20, 2026 (KPT) — Cambodia’s economy remains strong and resilient despite mounting external and domestic challenges, according to the AmCham Business Outlook 2026 report released Thursday.

The survey highlighted continued momentum even as businesses face pressures from geopolitical tensions, including conflict in the Middle East, lingering border issues with Thailand and concerns over industrial-scale online scams. Rising fuel prices and supply disruptions have pushed up consumer costs, while higher airfares have dampened tourist arrivals.

The report cautioned that while growth remains positive, it may not be sufficient to meet long-term development goals. It urged Cambodia to ratify a reciprocal trade agreement with the United States to safeguard exports and enhance productivity.

On his final day as AmCham president, Casey Barnett said Cambodia’s fundamentals remain solid but stressed the need for reforms. “The Cambodian economy is strong and resilient despite the challenges. However, if we want to achieve high-income status by 2050, reforms are needed—particularly to reduce excessive red tape and licensing requirements,” he said.

Business sentiment remains broadly positive, with 63 percent of surveyed firms planning new investment this year and half expecting profit growth. But the share of companies anticipating declining profits rose from 20 percent in 2025 to 34 percent in 2026, reflecting growing uncertainty.

Despite these pressures, businesses reported improvements in tax administration. The General Department of Taxation has streamlined audit procedures, improved transparency and strengthened engagement with the private sector through regular consultations. Respondents noted that faster and more efficient processes have reduced disputes and improved the overall business environment.

The report concludes that Cambodia’s economy continues to demonstrate resilience, but sustained reforms and strategic policy actions will be essential to maintain growth and achieve long-term development targets.