Cambodia’s Economic Project Faces Global Headwinds, AMRO Urges Proactive Policies

SINGAPORE, April 30, 2026 (KPT) — Cambodia’s economic project will require proactive policies and effective implementation to withstand global shocks, the ASEAN+3 Macroeconomic Research Office (AMRO) said Thursday.

Following its annual consultation visit to Phnom Penh, AMRO noted Cambodia’s economy grew 5.3 percent in 2025 but is projected to slow to 4.3 percent in 2026 as higher oil prices weigh on growth. Officials said targeted fiscal support for households and firms affected by energy shocks and border tensions, along with preemptive measures to address banking vulnerabilities, will be essential.

Lead economist Jinho Choi said steady garment exports, resilient FDI inflows and swift policy responses supported growth last year, but warned that rising non‑performing loans and external risks could undermine resilience. Inflation is expected to rise to 3.9 percent in 2026, while the current account deficit could widen to 8.5 percent of GDP.

AMRO recommended flexible fiscal policy, accommodative monetary measures and structural reforms to strengthen energy security, diversify exports and support social protection, ensuring Cambodia sustains medium‑term growth despite heightened uncertainty.