Cambodia’s economy is under significant pressure from a property sector downturn, returning migrant workers, and rising global trade barriers, according to the World Bank’s December 2025 update. GDP growth is expected to slow from 4.8% in 2025 to 4.3% in 2026 as domestic demand weakens, while banking sector risks rise and household incomes fall due to declining remittances and tourism. Despite these challenges, strong foreign investment, low inflation, and manageable public debt provide some resilience. The World Bank stresses the need for structural reforms, particularly formalizing the large informal sector, as Cambodia prepares for future economic transitions.

Abba Father, we pray for stability and resilience for Cambodia’s economy, that hardship may be eased and livelihoods restored. Lord, comfort workers and families affected by job losses and falling incomes, and open doors to new opportunities. Amen (The Holy Bible, Genesis 22:14).

Lord, renew hope in times of uncertainty and guide the nation toward sustainable development and peace. Amen (The Holy Bible, Proverbs 20:18).

News Source: Khmer Times

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