ADB sees Cambodia’s economy growing 4.5% in 2026

PHNOM PENH, April 10, 2026 (KPT) – Cambodia’s economy is projected to expand by 4.5 percent in 2026 if global disruptions are not prolonged by the conflict in the Middle East, the Asian Development Bank (ADB) said Friday.

In its Asian Development Outlook (ADO) April 2026, the bank said growth would be supported by resilient manufacturing, with industrial output forecast to rise 7.3 percent, driven by strong garment orders and expanding non-garment production including electrical components, tires, and furniture. Growth is expected to strengthen further to 5.0 percent in 2027 as external conditions improve and domestic reforms enhance productivity.

“Cambodia continues to show resilience in the face of external pressures,” said ADB Country Director Yasmin Siddiqi. “Manufacturing remains solid, and government efforts to bolster tourism will help maintain momentum despite global challenges.”

Agriculture is projected to grow modestly at 0.9 percent, supported by rice and cashew exports and government initiatives to reintegrate returning migrant workers. Services growth is expected to slow to 2.3 percent in 2026, reflecting the impact of Thailand’s border closure.

Foreign direct investment remained strong in 2025, with approved fixed-asset investment rising 45 percent, underscoring investor confidence and diversification into higher-value production. Inflation is forecast to edge up to 2.8 percent, though a prolonged fuel price shock could weigh on agriculture, manufacturing, and tourism.

ADB said Cambodia’s long-term goal of becoming a high-income economy by 2050 will require sustained productivity gains and workforce development, noting persistent skills gaps. It warned that a protracted Middle East conflict could lower regional growth by up to 1.3 percentage points and raise inflation by 3.2 points over 2026–2027.