World Bank says Cambodia’s economy resilient but urges targeted reforms amid multiple shocks

PHNOM PENH, June 9, 2026 (KPT) – Cambodia’s economy has shown resilience in the face of simultaneous shocks, but the World Bank warned Tuesday that targeted reforms are needed to protect jobs and livelihoods as global and domestic pressures mount.

In its June 2026 Cambodia Economic Update: Navigating Shocks, the Bank said rising oil prices linked to conflict in the Middle East have driven up transport and production costs, squeezing firms and households.

The economy is also grappling with a prolonged property downturn and falling remittances after nearly one million migrant workers returned home. Headline inflation surged to 5.8 percent in April, with low‑income families hardest hit. A 10 percent fuel price increase could raise poverty by 1.4 percentage points.

Despite these challenges, Cambodia attracted $5.1 billion in foreign direct investment in 2025, generating an estimated 400,000 formal jobs. Exports rose 17.7 percent in the first quarter of 2026, while GDP growth is forecast to moderate to 3.9 percent this year before recovering to 4.9 percent in 2027.

“Cambodia’s economy is holding in the face of simultaneous shocks, demonstrating a resilience that can be sustained through targeted policy action to protect jobs and livelihoods,” said Tania Meyer, World Bank Country Manager.

She added that with the working‑age population share peaking around 2043, the next two decades are decisive: “Investing in people—in education, jobs, and new engines of growth—will be critical to transforming Cambodia’s demographic opportunity into a lasting competitive advantage.”

The Bank urged time‑bound cash transfers for vulnerable households, stronger social protection, and reforms to boost productivity, alongside measures to support farmers through fertilizer imports and fuel‑efficient practices.