Cambodia Targets Long-Term Economic Resilience Through Deep Structural Reforms

PHNOM PENH, May 20, 2026 (KPT) — Cambodia is accelerating deep structural reforms to reinforce long‑term economic resilience and sustain growth amid global uncertainty, Deputy Prime Minister and Finance Minister Aun Pornmoniroth said Tuesday at the launch of EuroCham Cambodia’s White Book 2027.

Pornmoniroth cited mounting pressures from geopolitical tensions, supply chain disruptions, rising fuel costs, climate change and spillover effects from border tensions with Thailand.

Despite headwinds, Cambodia’s economy grew 5.3 percent in 2025, driven by garment manufacturing, non‑garment industries and wholesale‑retail trade. Foreign direct investment registrations reached US$10 billion, up 45 percent from 2024, while exports rose more than 17 percent.

The Asian Development Bank projects growth of 4.5 percent in 2026 if Middle East disruptions ease, with industrial output forecast to rise 7.3 percent on strong garment orders and expanding non‑garment production including electrical components, tires and furniture.

Growth is expected to strengthen to 5.0 percent in 2027. Agriculture is seen rising 0.9 percent, while services growth may slow to 2.3 percent due to Thailand’s border closure. Inflation is forecast at 2.8 percent, though prolonged fuel shocks could weigh on key sectors.

ADB said Cambodia’s ambition to become a high‑income economy by 2050 will require sustained productivity gains and workforce development, warning that a protracted Middle East conflict could lower regional growth by up to 1.3 percentage points.

Pornmoniroth said the government is advancing the Pentagonal Strategy Phase I alongside reforms in digital economy development, logistics modernization, trade facilitation, energy transition, renewable energy certification and regulatory transparency. He added that a comprehensive intervention programme is being finalized to safeguard livelihoods, support jobs and reinforce resilience.

He stressed that Cambodia’s upcoming graduation from Least Developed Country status demands faster reforms to reduce costs and maintain competitiveness in an increasingly challenging global environment.