The Sihanoukville Autonomous Port is seen at the Sihanoukville, Cambodia Sept. 28, 2017. Photo by Reuters
The Cambodian Government has lowered its 2026 economic growth forecast to 4.2%, down from the previously projected 5%.
According to the medium-term fiscal framework for 2027-2029 recently published by Cambodian Prime Minister Hun Manet, Cambodia is navigating a transition against a backdrop of protracted global crises, including rising protectionism, trade wars, geopolitical and geo-economic tensions, and increasingly severe impacts of climate change and natural disasters as well.
Notably, the report flags three consecutive storms that hit Cambodia over the past two years, including reciprocal tariff policies introduced under US President Donald Trump’s administration, the Cambodia–Thailand border dispute, and Middle East turmoil that triggered an energy crisis.
The 2027 growth forecast was also downgraded to 5% from 5.5%, as the drag from 2026 lingers. Still, the Government projects growth will rebound to an average of around 5.5% in the medium term over 2028–2029, as socio-economic activities gradually return to pre-crisis conditions.
