Government Projects Cambodia’s Economy to Recover to 5% Growth in 2027

PHNOM PENH, May 22, 2026 (KPT) — The government has forecast Cambodia’s economy will rebound to 5 percent growth in 2027 after slowing to a projected 4.2 percent this year amid regional tensions and global uncertainty.

The projection was outlined in the Ministry of Economy and Finance’s new medium‑term fiscal strategy, released with the circular on the 2027–2029 Budget Strategic Plan and the draft Law on Financial Management for 2027.

The ministry said Cambodia’s economy expanded 5.3 percent in 2025 but is expected to moderate in 2026 due to rising global oil prices, border tensions with Thailand and the impact of the government crackdown on online scam operations.

Despite the slowdown, the ministry expects stronger momentum from 2027, driven by industrial expansion, tourism recovery, export diversification and continued foreign direct investment. Exports remained resilient in 2025, particularly to the United States and European Union, despite pressures from shifting global trade policies.

The government said medium‑term growth could average 5.5 percent between 2028 and 2029 if reforms and investment promotion efforts succeed.

Meanwhile, the Asian Development Bank projects Cambodia’s economy could still expand by 4.5 percent in 2026 if global tensions ease, with industrial output supported by garments, electrical components, tires and furniture.