UK Backs Cambodia’s Reform Agenda to Strengthen Economic Resilience Amid Global Uncertainty

PHNOM PENH, June 25, 2026 (KPT) — The United Kingdom is backing Cambodia’s reform agenda to strengthen economic resilience through diversification and capacity building as global uncertainty weighs on economies worldwide, British Ambassador Dominic Williams said.

Speaking to Cambodia in Focus last week, Williams said resilience has become a major UK foreign policy priority, citing disruptions from Middle East tensions and rising oil prices. “This is a reality for all of us. We need to build our resilience,” he said.

Williams noted UK‑supported initiatives in education, infrastructure, energy and financial services are helping Cambodia build long‑term capacity to manage shocks. He praised reforms in taxation and public financial management, stressing that predictable policies and consistent regulation are vital for attracting investment. Diversification of export markets and supply chains, he added, remains critical to reducing vulnerability.

The World Bank, in its June 2026 Cambodia Economic Update, also warned that targeted reforms are needed to protect jobs and livelihoods as pressures mount. It said Cambodia faces a prolonged property downturn and falling remittances after nearly one million migrant workers returned home. Inflation surged to 5.8 percent in April, with fuel price increases threatening to push more families into poverty.

Despite challenges, Cambodia drew USD 5.1 billion in foreign direct investment in 2025, generating 400,000 formal jobs. Exports rose 17.7 percent in early 2026, with GDP growth forecast at 3.9 percent this year before recovering to 4.9 percent in 2027.