Assessment of the Impact of Cambodia–Thailand Border Conflicts on Cambodia’s Economy
The renewed tensions along the Cambodia–Thailand border in mid-2025 have reignited long-standing disputes that disrupted regional trade and investment flows. This instability caused interruptions in cross-border economic cooperation and introduced fresh challenges to Cambodia’s financial stability.
The analysis applies a qualitative framework to evaluate how these territorial frictions affect Cambodia’s economy through several channels, including trade activity, tourism flow, and investor sentiment. It highlights the vulnerability of key sectors that rely heavily on border trade and regional transport corridors.
“Border-related tensions can significantly influence economic confidence and investment behavior in neighboring nations.”
The note further explores how the escalation of the conflict may introduce additional downside risks to Cambodia’s short-term growth under different potential scenarios, emphasizing the need for policy responses to mitigate uncertainty and maintain regional economic resilience.
Author’s Summary
The border disputes between Cambodia and Thailand in 2025 disrupted trade and investment, posing short-term economic risks that may slow Cambodia’s growth if instability persists.