# Cambodia: Strengthening Economic Resilience in the Face of Global Uncertainty and Trade Challenges

- Link: https://www.thailand-business-news.com/asean/cambodia/238151-cambodia-strengthening-economic-resilience-in-the-face-of-global-uncertainty-and-trade-challenges
- Published: 2025-08-23T00:34:00+07:00
- Author: News Desk

Cambodia’s economy is expected to decelerate in 2025 and 2026, driven by the impact
of US tariffs and a sluggish real estate market, despite robust growth in the services
sector. Policy recommendations emphasize the need for economic diversification and
enhanced fiscal flexibility.

## Economic Overview

Cambodia’s economy is expected to slow in 2025 and 2026 due to US tariffs and declining
real estate activity, despite a strong services sector. The 2025 Annual Consultation
Report by the ASEAN+3 Macroeconomic Research Office (AMRO) outlines these challenges.
The report, based on an April consultation visit, stresses the need for targeted
fiscal support and market diversification to boost resilience amid global trade 
tensions.

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## Economic Risks

Cambodia faces increased uncertainties, mainly external. The economy grew by 6.0%
in 2024, up from 5.0% in 2023, but the growth rate is projected to slow to 5.2% 
in 2025 and 4.7% in 2026 due to potential tariffs. Inflation is trending downward
but remains uncertain, potentially rising to 2.5% in 2025 due to food price fluctuations.
The trade deficit is expected to widen, and public debt may rise to 27.2% of GDP.

## Policy Recommendations

The government’s tariff reduction on US goods is a positive step. Regional cooperation
and export diversification should be prioritized. Fiscal policy needs agility, balancing
sustainability with development goals. AMRO recommends maintaining an accommodative
policy stance, strengthening macroprudential frameworks, and enhancing data collection
for evidence-based policymaking. Effective implementation of structural reforms 
and inter-ministerial coordination are vital for sustainable growth.

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Source: [Cambodia: Building Economic Resilience Amid Uncertainty and Global Trade Tensions – ASEAN+3 Macroeconomic Research Office ](https://amro-asia.org/cambodia-building-economic-resilience-amid-uncertainty-and-global-trade-tensions)