The Cambodia Economy in 2026

Cambodia Economic Overview

Cambodia has achieved one of the world's most sustained growth performances — averaging over 7% annually for more than two decades since emerging from the Khmer Rouge era. This growth has halved the poverty rate and transformed Cambodia from one of Asia's poorest nations into a lower-middle-income country. The economy rests on four pillars: garment and footwear exports (70% of merchandise exports, primarily to the US and EU), tourism (Angkor Wat is Southeast Asia's most visited archaeological site), construction (Chinese-financed projects), and agriculture (rice is the staple crop and key export).

Cambodia is highly dollarized — over 80% of deposits and loans are in US dollars, which provides price stability but limits monetary policy flexibility. Chinese investment has been transformative, particularly in infrastructure, real estate (Sihanoukville has been rebuilt by Chinese developers), and special economic zones. GDP per capita at $2,902 is rising but remains low within ASEAN. Challenges include governance concerns, environmental degradation, and dependence on garment preferential trade access.