Phnom Penh: Cambodia is expected to maintain a steady economic growth trajectory in 2025 and 2026, driven by external demand for manufactured goods and the continued recovery in the tourism sector, according to the Asian Development Outlook April 2025.

According to Agence Kampuchea Presse, Cambodia’s economy is forecast to grow by 6.1 percent in 2025 and 6.2 percent in 2026, as stated by the Asian Development Bank (ADB) in a report released on April 9. The growth is primarily attributed to increasing external demand for manufactured goods and a continued recovery in tourism.

The report highlights that construction and real estate sectors are expected to revive gradually, while the agriculture sector should continue to experience gains. However, the ADB cautioned that this positive outlook is subject to several significant downside risks.

These risks include potential weakened exports due to tariffs on Cambodian goods amidst a global escalation of trade barriers, slower growth in major trading partners, rising nonperforming loans which could disrupt financial sector growth, and extreme weather conditions.