World Bank Projects Cambodia’s Economy to Grow 3.5% in 2026 and 4.2% in 2027
World Bank Projects Cambodia’s Economy to Grow 3.5% in 2026 and 4.2% in 2027
PHNOM PENH, October 6, 2026 — The World Bank has projected that Cambodia’s economy will grow by 3.5% in 2026 and accelerate to 4.2% in 2027, according to its latest East Asia and Pacific Economic Update released on Tuesday.
The forecast comes as economic growth across the region remains uneven among countries and sectors, while the expanding adoption of artificial intelligence (AI) is creating new opportunities for economic activity and jobs.
The World Bank projects that the East Asia and Pacific region will grow by 4.5% in 2026, demonstrating resilience despite a range of global economic challenges. The bank said the region’s strong integration into global value chains and growing participation in AI-related economic activity are creating opportunities, although countries face different growth conditions.
For Cambodia, the latest projection represents a more cautious outlook than the World Bank’s earlier forecast. In June 2026, the World Bank had projected Cambodia’s real GDP growth at 3.9% in 2026, with growth expected to recover to 4.9% in 2027.
The latest forecast also comes amid differing assessments from other institutions. The Asian Development Bank (ADB) recently lowered its 2026 growth forecast for Cambodia to 3.9% from 4.1%, while Cambodia’s Ministry of Economy and Finance has projected growth of 4.2% for 2026.
The World Bank’s latest outlook highlights the importance of productivity, skills and policy reforms as economies seek to benefit from technological change. It has also emphasized that countries need to strengthen infrastructure, skills and policy frameworks to turn AI-related opportunities into broader economic gains and employment.
Cambodia’s economic outlook therefore remains subject to both domestic and external developments, with the latest World Bank projection pointing to moderate growth in 2026 followed by a gradual recovery in 2027.
