The Cambodia–Thailand border disputes in 2025 significantly disrupted economic activities, posing potential challenges to Cambodia’s economy. This analysis examines the economic repercussions and evaluates growth risks across various scenarios.
Resurgence of Border Disputes
In mid-2025, longstanding tensions along the Cambodia-Thailand border re-emerged, negatively impacting cross-border economic activities. This situation has introduced potential economic challenges for Cambodia. The border conflict, if unresolved, could significantly affect trade and economic relations, limiting Cambodia’s growth prospects.
Assessing Economic Impact
This analysis uses a qualitative approach to evaluate how the renewed tensions might affect Cambodia’s economy. Key channels through which the conflict impacts include trade disruptions and strained economic relations. As border tensions escalate, multiple sectors, especially those reliant on cross-border trade, are likely to face significant challenges, further slowing economic progress.
Implications for Growth
The ongoing border conflict poses additional risks to Cambodia’s short-term economic outlook. Different scenarios predict varying levels of economic downturn, with some suggesting potential setbacks to growth. If the conflict continues unabated, Cambodia may need to adjust its economic strategies to mitigate adverse effects and secure its economic future.
