Global headwinds and border disputes drag Cambodia's 2025 GDP growth down to 5%

/ March 31, 2026


News Highlights

Global headwinds and border disputes drag Cambodia's 2025 GDP growth down to 5% Cambodia's economy grew by 5% in 2025, down from 6% in 2024. While early momentum was driven by U.S. exports and tourism, growth slowed due to global uncertainties and a border conflict with Thailand. Manufacturing remains the main driver at 8.5%, showing promising diversification. Challenges persist as construction and real estate stay below pre-pandemic levels, while Middle East tensions pushed inflation to 2.5%. Despite a 16% rise in FDI, risks like high dollarization and narrow export bases remain. Experts emphasize that long-term resilience depends on structural reforms and promoting the local currency to enhance monetary policy effectiveness. (Source: Khmer Times)

ICCI vows to drive more Korean investment and tourism toward Cambodia Cambodian Tourism Minister Huot Hak met with ICCI Chairman Joo-Bong Park to expand investment and tourism cooperation. The Korean delegation praised Cambodia's political stability as a favorable business environment. To bolster investor confidence, Minister Hak highlighted the government's commitment to eliminating online scams by April 2026. Both parties agreed to enhance connectivity through direct flights, joint promotions, and specialized travel packages. These initiatives aim to increase Korean visitor and investor flows ahead of the 30th anniversary of diplomatic relations. Since joining the ICCI in 2011, Cambodia has continued to leverage this partnership to strengthen its international trade linkages and facilitate business-to-business engagements across various sectors. (Source: Khmer Times)

Cambodia and Singapore strengthen financial ties through the official launch of their Phase 2 QR payment linkage The National Bank of Cambodia (NBC) and the Monetary Authority of Singapore (MAS) officially launched Phase 2 of their cross-border QR payment linkage in Phnom Penh. Following the Phase 1 launch in late 2025, this expansion allows Singaporean travelers to scan KHQR codes at approximately 4.5 million Cambodian merchants using their home mobile banking apps. Supported by ACLEDA and Phillip Bank, the initiative leverages Cambodia's Bakong system to modernize payments, reduce transaction costs, and promote the use of local currencies. Officials emphasized that this digital milestone fosters financial inclusion and strengthens regional connectivity. With Cambodia already linked to several Asian nations, this partnership further integrates the ASEAN economic community, benefiting tourism and small businesses in both countries. (Source: Khmer Times)

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