(Phnom Penh): Cambodian Minister of Economy and Finance Aun Pornmoniroth announced that Cambodia has revised its 2026 economic growth forecast downward to 4.2 per cent, citing rising global oil prices, inflationary pressures, and ongoing instability in the Middle East.

He spoke during the inauguration ceremony of the new headquarters of the General Department of Taxation on Thursday (May 21) in Phnom Penh, presided over by Cambodian Prime Minister Hun Manet.

According to Minister Aun Pornmoniroth, higher global energy prices are expected to affect key sectors dependent on fuel, including agriculture, transportation, and tourism, while inflation could weaken consumer spending and economic activity.

Despite global uncertainty, Cambodia recorded economic growth of 5.3 per cent in 2025, supported by continued public financial reforms and stronger domestic revenue collection.

The minister said reforms under the Public Financial Management Reform Program have strengthened the government’s capacity to invest in infrastructure, including roads, bridges, schools, hospitals, irrigation systems, clean water supply, and electricity networks.

He added that increased state revenue has also enabled the government to expand salaries, pensions, and social protection programs for civil servants, armed forces, retirees, and vulnerable citizens.

The minister noted that the Royal Government under Hun Manet is continuing to implement the Pentagonal Strategy Phase I alongside priority policy measures aimed at strengthening competitiveness, diversifying the economy, improving the business environment, and attracting high-value investment.

He emphasised that the government is committed to enhancing competitiveness, resilience, Both the Asian Development Bank and the World Bank currently project Cambodia’s 2026 economic growth at 4.5 per cent.
=FRESH NEWS