Cambodia's Economy Projected to Grow 3.9% in 2026 Amid Global Headwinds

The National Bank of Cambodia (NBC) has forecast that Cambodia’s economy will grow by 3.9 percent in 2026, reflecting the country’s resilience despite ongoing global uncertainties and domestic challenges. According to the NBC, Cambodia’s economy expanded by an estimated 3.5 percent in the first half of 2026, weighed down by global economic headwinds and several domestic factors. However, the central bank expects economic growth to accelerate to 4.3 percent in the second half of the year, driven by stronger exports of garments, non-garment manufactured goods, and agricultural products, as well as continued inflows of foreign direct investment. “The fact that Cambodia is expected to achieve economic growth of between 3 and 4 percent demonstrates the resilience of the Cambodian economy in the face of crises,” said NBC Governor H.E. Dr. Chea Serey at a meeting to review work achievements during the first half of 2026 and set objectives for the second half of the year, held in Phnom Penh on July 27. She noted that Cambodia, like many other countries, has been affected by the uncertain global economic environment. Domestically, the country has also faced challenges, including prolonged border tensions with Thailand, the government’s campaign to combat cyber fraud, and the lingering impacts of the COVID-19 pandemic. The latest NBC forecast comes after the International Monetary Fund (IMF) revised its projection for Cambodia’s 2026 economic growth to 3.0 percent following its Article IV consultation. Meanwhile, other international institutions, including the Asian Development Bank (ADB) and the ASEAN+3 Macroeconomic Research Office (AMRO), have maintained their growth forecasts at around 4.2 percent. H.E. Dr. Chea Serey attributed Cambodia’s economic resilience to the Royal Government’s continued efforts to preserve peace, security, political stability, and macroeconomic stability under the leadership of Samdech Moha Borvor Thipadei Hun Manet, Prime Minister of the Kingdom of Cambodia. She added that the government’s ongoing structural reforms, particularly those aimed at economic diversification under the first phase of the Pentagonal Strategy, have strengthened the country’s ability to withstand external shocks while laying the foundation for sustainable long-term growth. By Chea Vannak