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The Better Cambodia > Blog > Invest In Cambodia > Business > Economy > Cambodia’s Economy to Grow by 6.1% in 2025 and 6.2% in 2026, Says ADB Report
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Cambodia’s Economy to Grow by 6.1% in 2025 and 6.2% in 2026, Says ADB Report

Last updated: April 10, 2025 1:24 am
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Cambodia’s Economy to Grow by 6.1% in 2025 and 6.2% in 2026, Says ADB Report
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Phnom Penh, Apr. 9 – Cambodia’s economy is set to maintain a strong and stable growth trajectory in 2025 and 2026, underpinned by solid external demand for manufactured goods and a sustained recovery in tourism, according to the Asian Development Bank’s (ADB) latest economic outlook.

In the Asian Development Outlook (ADO) April 2025, the ADB projects Cambodia’s gross domestic product (GDP) to grow by 6.1 percent in 2025 and 6.2 percent in 2026, building on the 6.0 percent growth estimated for 2024. While these projections underscore the country’s economic resilience, the report notes that downside risks have intensified due to ongoing global uncertainties. Key concerns include shifts in U.S. trade policy, instability in China’s property market, and heightened geopolitical tensions that could disrupt regional and global supply chains.

The forecasts were developed before the U.S. administration’s announcement on April 2 regarding new tariffs. As such, the baseline scenario incorporates only those trade measures in effect as of March 2025. Nevertheless, the ADB includes a broader analysis of the potential impact of increased tariffs on economic growth throughout Asia and the Pacific.

“The positive economic outlook for Cambodia in 2025 and 2026 reflects the country’s potential for resilience and underlying strengths,” said Jyotsana Varma, ADB Country Director for Cambodia. “Even amid persistent global uncertainty, Cambodia has the opportunity to diversify its economy and build inclusive and sustainable growth through strategic investments in digital infrastructure and human capital development.”

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The industrial sector is expected to remain a primary engine of growth, with output projected to increase by 9.3 percent in both 2025 and 2026. This will be driven by robust performance in both garment and non-garment manufacturing. The services sector is forecast to grow by 4.4 percent annually, supported by tourism recovery and business services, though real estate activity remains subdued.

Tourism, one of the country’s key economic pillars, continues to regain momentum. Earnings from the sector are projected to increase steadily, with rising international arrivals, particularly from within Southeast Asia, contributing to overall growth.

The report also emphasizes the critical importance of digital transformation as a long-term policy priority. While Cambodia has made progress in e-governance—climbing from 155th place in 2012 to 120th in the United Nations’ 2024 e-Government Development Index—significant gaps remain in areas such as digital service delivery and infrastructure.

To close these gaps and enable sustainable growth, the ADB calls for greater public investment in digital public infrastructure. Key areas for development include universal unique digital identification systems, widespread broadband access, reliable data centers, enhanced cybersecurity, and innovation hubs. These efforts must be matched by investments in education and workforce skills to boost productivity and ensure that the benefits of growth are broadly shared.

As Cambodia positions itself for future development, the report concludes that leveraging technology, strengthening institutional capacity, and fostering private sector innovation will be essential to achieving inclusive and sustainable economic progress.

SOURCES:Fresh News

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