Fashion
ADB cuts Cambodia’s growth outlook to 4.9% in 2025, 5% in 2026
Nevertheless, solid growth is expected through 2026, driven by continued strength in the industrial sector and steady inflows of foreign direct investment, ADB said in a press release.
“The economy has shown resilience in the first half of 2025,” said Jyotsana Varma ADB country director for Cambodia. “Lower-than-expected food price increases and declining fuel costs helped ease inflation, while industrial activity remained robust. Looking ahead, there is scope for continued recovery in the construction and tourism sectors, alongside steady growth in agriculture, which together point to a more balanced and sustainable expansion.”
The Asian Development Bank has lowered Cambodia’s growth forecast to 4.9 per cent for 2025 and 5 per cent for 2026, citing geopolitical tensions with Thailand and US trade uncertainty.
Growth remains driven by industry and foreign investment.
Garment exports rose 22.2 per cent in early 2025 as US buyers stocked up ahead of possible tariff hikes.
Inflation dropped to 1.6 per cent in June.
Year-over-year (YoY) inflation for Cambodia declined sharply from 6 per cent in January to 1.6 per cent in June, according to ADB’s flagship economic report titled, ‘Asian Development Outlook (ADO) September 2025’. Inflation is expected to average around 2 per cent in 2025 and 2026.
Industry continues to be the main growth engine. Garment exports surged 22.2 per cent YoY in the first half of 2025, partly due to US buyers stocking up in anticipation of higher tariffs on Cambodian imports. Despite cautious sentiment among importers stemming from trade policy uncertainty, the garment and non-garment manufacturing sectors are expected to remain strong, supported by a relatively favourable 19 per cent US tariff rate.
Fibre2Fashion News Desk (SG)
Cotton yarn prices increased by ****;*–* per kg in most of varieties and counts as demand improved in the last couple of days. A trader from Tiruppur market told Fibre*Fashion, “Cotton yarn demand improved as rising prices of cotton encouraged buying. More buyers are interested in building up stock as they expect prices to rise in the near future.” Traders showed brave face against proposed US tariff bill. They said that Indian businesses and industries need to learn floating without America. However, textile and apparel industry may see severe impact if higher tariffs materialise.
In Tiruppur, knitting cotton yarn prices were noted as: ** count combed cotton yarn at ****;***–*** (~$*.**–*.**) per kg (excluding GST), ** count combed cotton yarn at ****;***–*** (~$*.**–*.**) per kg, ** count combed cotton yarn at ****;***–*** (~$*.**–*.**) per kg, ** count carded cotton yarn at ****;***–*** (~$*.**–*.**) per kg, ** count carded cotton yarn at ****;***–*** (~$*.**–*.**) per kg and ** count carded cotton yarn at ****;***–*** (~$*.**–*.**) per kg.
The operation was carried out with a fixed quantity through interest-rate bidding, with winning bids determined at multiple price levels and a maturity period of three months, according to a state-controlled news outlet.
As 1.1-trillion yuan of three-month outright reverse repos are set to mature in January, the latest move represents a rollover of the same amount.
The People’s Bank of China conducted a 1.1-trillion-yuan (~$157 billion) outright reverse repo operation yesterday to maintain sufficient liquidity in the banking system.
The operation was carried out with a fixed quantity through interest-rate bidding, with winning bids determined at multiple price levels and a maturity period of three months.
Outright reverse repo operations were introduced in October 2024 to manage liquidity in the national banking system and are carried out each month with a tenor of no more than a year.
Fibre2Fashion News Desk (DS)
In November 2024, it saw a YoY increase of 0.5 per cent.
The Philippine manufacturing producer price index (PPI) posted a slower YoY rise of 0.1 per cent in November 2025 from a 0.5-per cent YoY rise in October.
It also exhibited a slower month-on-month (MoM) rise of 0.2 per cent in the month from a 0.6-per cent rise in October.
The PPI for readymade garments manufacturing rose by 0.7 per cent YoY and decreased by less than 0.05 per cent MoM in November 2025.
The deceleration in November 2025 was primarily due to the 0.1-per cent YoY decline in the PPI for manufacture of transport equipment from a 1-per cent YoY increase in October 2025.
The manufacture of transport equipment contributed 25.8 per cent to the slower annual growth rate of PPI for manufacturing in the month.
The manufacturing PPI also exhibited a slower month-on-month (MoM) increase of 0.2 per cent in the month from a 0.6-per cent rise in October. It posted a 0.6-per cent MoM increase in November 2024.
The PPI for readymade garments manufacturing rose by 0.7 per cent YoY and decreased by less than 0.05 per cent MoM in November 2025, a release from the Philippines Statistics Authority (PSA) said.
The value of production index (VaPI) for the manufacturing section registered a YoY decrease of 1.4 per cent in November last year from a 1.5-per cent YoY increase in October. In November 2024, it recorded a YoY decline of 4.1 per cent.
Fibre2Fashion News Desk (DS)
South India cotton yarn gains but market unease over US tariff fears
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