Cambodia Economy 2026: Growth, Risks, and Opportunities

Cambodia continues to be one of Southeast Asia's fastest-growing economies. With GDP growth estimated at 5.4% in 2024, the Kingdom is outpacing several of its ASEAN neighbors. But the numbers tell only part of the story.

The Growth Story

Cambodia's economy has rebounded strongly post-COVID, driven by three pillars:

• Manufacturing exports — garments, footwear, and electronics continue to grow, aided by preferential trade access
• Tourism recovery — 6.1 million arrivals in 2024, approaching pre-pandemic levels
• Construction and real estate — Chinese and domestic investment driving urbanization

FDI: The Cambodia Advantage

Cambodia's FDI-to-GDP ratio (~11%) is the highest in CLMV. Key attractions include:

• USD-based economy (dollarization reduces FX risk for foreign investors)
• Young workforce (median age 26)
• Competitive minimum wage ($204/month)
• Special Economic Zones with tax incentives

Challenges

Despite strong growth, Cambodia faces structural risks:

• Narrow economic base — still heavily dependent on garments, tourism, and construction
• Governance scores — WGI political stability and corruption control lag regional peers
• Skills gap — growing mismatch between workforce skills and emerging industry needs
• Climate vulnerability — agriculture sector exposed to flooding and drought cycles

The NationsData Score

Cambodia scores 55/100 on our composite index — classified as "Moderate" risk. Strong on growth metrics, weaker on governance and financial depth. For investors, Cambodia offers above-average returns in exchange for above-average political and regulatory risk.

Data Sources

Economic indicators from World Bank Open Data (CC BY 4.0). NationsData's scoring is proprietary.