PHNOM PENH, Sept. 23 (Xinhua) -- The Asian Development Bank (ADB) on Wednesday revised Cambodia's growth forecast to 3.9 percent in 2026, down from 4.1 percent projected in July, reflecting weaker-than-expected activity in tourism and related services.
Growth is expected to strengthen to 4.7 percent in 2027, supported by resilient manufacturing, export diversification, and continued foreign direct investment, said its news release.
"Cambodia's economy continues to demonstrate resilience," said ADB Country Director for Cambodia Yasmin Siddiqi.
"Strong manufacturing exports and buoyant investment inflows are helping offset tourism sector challenges," she added.
Siddiqi said continued efforts to diversify the economy, enhance competitiveness, support vulnerable households, and strengthen resilience will be important for sustaining inclusive growth.
According to the news release, inflation forecasts have been revised upward, reflecting higher global oil prices and rising import costs.
It said inflation rose from 2.6 percent year on year in February to 7.2 percent in May before easing to 5.5 percent in July.
ADB forecasts inflation at 4.7 percent in 2026 and 2.8 percent in 2027, as fuel tax relief measures and a broadly stable riel help moderate price pressures, the news release said.
According to the news release, industry remains the main driver of growth, while construction and real estate remain subdued.
Growth in services is expected to be weaker than previously expected as tourism activity declined, the news release said.
International visitor arrivals fell 47.9 percent year on year to 1.8 million in the first half of 2026, or just over half of pre-pandemic levels, it said. ■
