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Economic Outlook 2026: Navigating Global Headwinds at the Royal Academy of Cambodia

Leave a Comment / Higher Education / By SchoolsCambodia

PHNOM PENH, February 25, 2026 — The Department of Economics hosted a timely and insightful public lecture focused on the trajectory of the Cambodian economy in 2026. The event, which drew an audience of over 200 students, faculty, and university management, centered on the dual challenges of international trade policy and regional border stability.

Expert Insights: The “5% Path”

H.E. Dr. Ky Sereyvath, a distinguished Economic Researcher at the Royal Academy of Cambodia (RAC), served as the guest speaker. His presentation provided a candid look at the figures that will define the coming year:

  • Growth Moderation: Cambodia’s GDP growth is projected to adjust slightly from 5.2% in 2025 to 5% in 2026.
  • External Pressures: A primary driver of this slowdown is the implementation of U.S. reciprocal tariffs, which have impacted the export competitiveness of Cambodian goods in their largest market.
  • Geopolitical Friction: Ongoing border disputes and closures (particularly at the Cambodia-Thailand land border) have increased logistics costs and disrupted regional trade flows.

Strategies for Stability

Despite these hurdles, Dr. Ky Sereyvath outlined several key pillars of the government’s strategy to maintain macroeconomic stability:

  1. Market Diversification: Reducing over-reliance on the U.S. market by leveraging RCEP and the Cambodia-China Free Trade Agreement (CCFTA).
  2. Internal Resilience: Strengthening domestic supply chains and food security to cushion against external shocks.
  3. Human Capital: Investing in technical skills and professional training to attract higher-value industries like electronics and green tech.
  4. Agile Fiscal Policy: Using the 2026 Budget (approximately $10 billion) to prioritize infrastructure and social safety nets.

From our perspective at Schools Cambodia, lectures like these are essential. Understanding why growth is slowing is the first step for our future economists and business leaders to develop the innovations that will eventually push us back toward the 6%–7% targets of the past decade.

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