PHNOM PENH - The Cambodian economy showed resilience in early 2026 despite external headwinds, with GDP growth holding steady at 5.8 percent in the first quarter according to World Bank data released this week.
The Southeast Asian nation has maintained positive momentum through strong garment exports and tourism recovery, even as global supply chain disruptions and elevated energy prices pressured regional economies.
Cambodia's manufacturing sector continued to attract foreign investment, particularly in the textile and footwear industries that account for approximately 16 percent of GDP. Export volumes to the United States and European markets remained robust through March.
Tourism receipts improved significantly, reaching 72 percent of pre-pandemic levels by April. The government's targeted visa-on-arrival programs and airline partnerships with regional carriers supported the sector's recovery.
The World Bank noted that while Cambodia faces challenges from rising borrowing costs, the country's foreign reserves remain adequate at 4.6 months of import cover. Inflation moderated to 3.2 percent in April, down from peaks of 6.1 percent in late 2025.
Sources: World Bank, Phnom Penh Post
