ADB Forecasts Sustainable Economic Growth for Cambodia in 2025 and 2026

• 11 April 2025
• Local News
• 1690 Views

In a promising outlook for Cambodia’s economy, the Asian Development Bank (ADB) projects a growth rate of 6.1 percent for 2025 and 6.2 percent for 2026. The positive forecast, detailed in the Asian Development Outlook released on April 9, highlights a steady trajectory driven primarily by robust external demand for manufactured goods and the ongoing recovery of the tourism sector.

According to the report, manufacturing exports are expected to thrive, supported by improvements in global market conditions. Additionally, the tourism sector is poised for a significant rebound, a vital component of the nation’s economic recovery. The construction and real estate sectors are also anticipated to gradually recover, while agriculture is expected to see continued gains.

However, the ADB cautions that this optimistic outlook is not without its risks. Potential challenges include weakened export growth due to tariffs imposed on Cambodian goods amid escalating global trade barriers, slower economic performance from major trading partners, an increase in nonperforming loans that could hinder financial sector growth, and the threat of extreme weather conditions affecting various sectors.

As Cambodia navigates these dynamics, the government and stakeholders will need to remain vigilant to maintain economic stability and foster sustainable growth in the coming years.

• Economy and Finance