Cambodia’s economy is projected to moderate in 2025 and 2026 following the 6.0 percent expansion in 2024, reflecting the impact of US tariffs and subdued real estate activity, despite continued strength in the services sector.
Inflation has been trending downward but remains uncertain, mainly due to fluctuations in food prices. Headline consumer price index (CPI) inflation is expected to rise to 2.5 percent in 2025 due to base effects, before moderating to 2.3 percent in 2026, aligning with pre-pandemic trends. However, given uncertain inflation path and rapid pass-through from commodity prices, a surge in global commodity prices could intensify inflationary pressures.