AKP Phnom Penh, October 24, 2025 --

The plenary cabinet meeting held this morning approved an increase in the national budget for next year to KHR 40,913 billion (approximately US$10.16 billion), representing a rise of 7.8 percent compared to the 2025 financial law.

The figures were revealed in a press release issued this afternoon following the cabinet meeting chaired by Prime Minister Samdech Moha Borvor Thipadei Hun Manet at the Peace Palace.

According to the release, the approved budget is equivalent to 18.85 percent of the Gross Domestic Product (GDP).

The Royal Government projects Cambodia’s economy to grow by 5.2 percent in 2025 and around 5 percent in 2026. The country’s GDP per capita is expected to increase to approximately US$3,020 in 2026, up from about US$2,858 in 2025, reflecting steady economic progress.

The 2026 economic growth is forecast to be driven by the main sectors of industry, services, and agriculture, with additional contributions from the fisheries and livestock subsectors.

Meanwhile, the average annual inflation rate is projected to remain moderate at around 2.8 percent, indicating stable prices and a favourable macroeconomic environment.

By Heng Panha