PHNOM PENH – The Royal Government of Cambodia today approved an increase in the national budget for the year 2026, signaling a significant financial commitment toward continued national development.
The approval was made during a plenary cabinet meeting held this morning at the Peace Palace, chaired by Prime Minister Samdech Moha Borvor Thipadei Hun Manet.
Key Budget and Economic Figures
According to a press release issued following the meeting, the national budget for 2026 has been set at KHR 40,913 billion, which is approximately US$10.16 billion. This figure represents an increase of 7.8 percent compared to the 2025 financial law and is equivalent to 18.85 percent of the Gross Domestic Product (GDP).
The government maintains a positive economic outlook for the coming years:
- Economic Growth: Cambodia’s economy is projected to grow by 5.2 percent in 2025 and an estimated 5 percent in 2026.
- GDP Per Capita: The country’s GDP per capita is expected to increase to approximately US$3,020 in 2026, up from an estimated US$2,858 in 2025, reflecting steady economic progress.
- Inflation: The average annual inflation rate is projected to remain moderate and stable at around 2.8 percent.
Drivers of Growth
The forecast for the 2026 economic growth is primarily driven by the key sectors of industry, services, and agriculture. Within the agricultural sector, additional growth is anticipated from the fisheries and livestock subsectors.
The approved budget and stable macroeconomic projections underscore the Royal Government’s continued efforts to foster a favorable investment environment and ensure sustained economic stability and prosperity.