Policy space matters: Asian Development Bank believes Cambodia better positioned than in past economic crises
The Asian Development Bank says Cambodia is better positioned to handle the current global economic uncertainty due to its stronger fiscal management and monetary stability. The bank projects Cambodia's economy to grow by 4.5% in 2026.
Cambodia is entering a period of global economic uncertainty from a stronger policy position than during previous crises, according to the Asian Development Bank (ADB). The ADB projects Cambodia's economy to grow by 4.5% in 2026. The country's stronger fiscal management, monetary stability, and ongoing structural reforms have given the government more room to respond to the current economic challenges. Cambodia's high level of dollarisation in the economy provides short-term protection during periods of global inflation and currency instability. The government has sufficient fiscal space to intervene if conditions worsen, having implemented prudent debt management and post-pandemic fiscal consolidation. The ADB is in close dialogue with the Ministry of Economy and Finance to assess emerging risks and identify areas for urgent support.
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