PHNOM PENH, Oct. 7 (Xinhua) -- The World Bank on Tuesday lowered Cambodia's economic growth forecast for 2025 to 4.8 percent, down from 6 percent in 2024.
Aaditya Mattoo, chief economist of the World Bank's East Asia Pacific Region, said U.S. tariff hike and border conflict with Thailand had hampered the Southeast Asian nation's growth.
On Aug. 1, the U.S. imposed a 19-percent tariff on all goods imported from Cambodia.
"Cambodia, along with Laos, faces some of the highest tariffs today in the region," he said during a video press conference on the launch of the East Asia and Pacific Economic Update.
"Next year, it is going to be more difficult. There's also likely to be weaker demand," he added.
Mattoo said the border tensions with Thailand, which resulted in border closure, have led to a decline in remittances and trade.
The World Bank also further downgraded the kingdom's growth forecast for 2026 to 4.3 percent.
