Cambodia First in Line for ADB Emergency Funding as Global Oil Crisis Threatens Growth

PHNOM PENH, April 20, 2026 (KPT) — Cambodia is set to become the first country to access emergency financial support from the Asian Development Bank as global oil price shocks threaten growth across Asia and the Pacific, officials said Monday.

ADB Principal Economics Officer Doung Poullang said the bank is working with Cambodian authorities to design budget financing aimed at cushioning the impact of rising energy costs and protecting vulnerable populations.

“We are still discussing the modalities, but this type of loan could help the government roll out temporary social protection measures,” he said, noting Cambodia could be the first to access the facility once finalized. The size of the package has yet to be determined.

The ADB has warned that prolonged energy market disruptions, driven by conflict in the Middle East, could reduce regional growth by up to 1.3 percentage points between 2026 and 2027, while inflation could rise as much as 3.2 percent. The impact is expected to spread through higher fuel and transport costs, supply chain disruptions, tighter financial conditions and weaker trade flows, with tourism and remittances also at risk.

ADB analysis outlines scenarios ranging from moderate price spikes to severe surges above $155 per barrel. In the worst case, Southeast Asia and the Pacific would face the sharpest slowdown.

Chief Economist Albert Park cautioned that extended disruptions could leave developing economies grappling with weaker growth and rising inflation, stressing the need for targeted policy responses to stabilize markets and build resilience.