World Bank Revises Cambodia’s Growth Outlook for 2025
(MENAFN) The World Bank revised Cambodia's 2025 economic growth forecast down to 4.8 percent, from a previous estimate of 6 percent for 2024, citing challenges such as rising U.S. tariffs and ongoing border tensions with Thailand.
Aaditya Mattoo, Chief Economist for the World Bank’s East Asia Pacific Region, noted that the tariff hike, which saw the U.S. impose a 19-percent tariff on all Cambodian imports starting August 1, has significantly impacted the country's economy.
"Cambodia, along with Laos, faces some of the highest tariffs today in the region," Mattoo stated during a video press conference unveiling the East Asia and Pacific Economic Update. "Next year, it is going to be more difficult. There's also likely to be weaker demand," he added.
The border conflict with Thailand, which has led to a border closure, further exacerbated the situation, resulting in declines in both remittances and trade, according to Mattoo.
Additionally, the World Bank downgraded Cambodia's economic growth forecast for 2026 to 4.3 percent, underscoring the ongoing challenges facing the Southeast Asian nation.
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