ISEAS this week released a new commentary arguing that despite significant trade and labour disruptions caused by the 2025 Cambodia–Thailand border conflict, the economic impact on Cambodia has so far been milder than expected for a small, trade-dependent economy.
The commentary states that Cambodia’s future resilience depends on stabilising displaced workers’ finances, diversifying its industrial base, and developing new growth drivers in its western border provinces.
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The conflict’s limited economic effect on Cambodia may reflect: the versatility of trade for small open economies with sea access and multiple neighbours; the geopolitical benefits of investments from larger economies; and the limits to geoeconomic tools among regional states. Cambodia’s future growth depends on how it stabilises displaced workers’ finances, diversifies and upgrades its industrial base, and fosters new growth drivers in its western provinces.
Read the full commentary: Cambodia’s economy before and after the 2025 border conflict