PHNOM PENH, April 10 (Xinhua) -- Cambodia's economy is projected to expand by 4.5 percent in 2026 if global commodity market disruptions are not prolonged by the conflict in the Middle East, said the latest edition of the Asian Development Bank (ADB)'s economic report released on Friday.
Growth is supported by resilient manufacturing performance, the report said, adding that the growth is projected to strengthen further to 5 percent in 2027 as external conditions improve and domestic reforms continue to enhance economic productivity.
"Cambodia continues to show resilience in the face of external pressures," said ADB country director for Cambodia Yasmin Siddiqi. "Manufacturing remains solid, and ongoing government efforts to bolster the tourism sector will help maintain economic momentum despite global challenges."
She said that developing a productive workforce is essential for attracting diversified, high-quality investment, while public-private collaboration in skills development is crucial to achieving Cambodia's long-term growth objectives.
The report said that manufacturing will remain the economy's primary growth engine in 2026, with industrial output expected to grow by 7.3 percent.
"This is driven by strong garment orders and expanding contributions from non-garment manufacturing, including electrical components, tires, and furniture," the report said.
Inflation is forecast to edge up to 2.8 percent in 2026, assuming global commodity price increases due to the Middle East conflict are not sustained, it added.
"A protracted fuel price shock could raise imported input costs and adversely affect agriculture, manufacturing, and tourism," the report said. ■