Fashion
Cambodia cuts 2026 growth forecast to 4.2% amid Middle East turmoil
He said the sharp increase in oil and gas prices has fuelled inflationary pressures, weighing on the country’s growth outlook. Despite the downgrade, the government expects economic recovery, projecting growth to rebound to 5 per cent in 2027 and average around 5.5 per cent annually through 2029.
Cambodia has lowered its 2026 growth forecast to 4.2 per cent from 5 per cent due to rising oil and gas prices amid Middle East instability and Thailand border tensions.
Inflationary pressures are weighing on the economy, though growth is expected to recover to 5 per cent in 2027.
Export-driven sectors and tourism remain vulnerable to global volatility.
Cambodia’s economy continues to rely heavily on exports of garments, footwear and travel goods, alongside tourism, agriculture and construction. Authorities cautioned that prolonged global uncertainty could further impact these key sectors and slow overall economic momentum.
Fibre2Fashion News Desk (CG)