From Remittances to Resilience: Harnessing Returning Migrant Workers for Cambodia’s Growth
“Cambodia stands at a pivotal economic crossroads. The recent border conflict with Thailand has not only strained bilateral relations but also triggered a reversal of long-standing migration flows, with more than 750,000 Cambodian migrants returning home since the clashes broke out on July 24, 20251. For decades, remittances from Cambodian workers in Thailand— averaging more than $1.5 billion annually—have been a cornerstone of rural household income and a stabilizing source of national consumption. Their sudden decline, an estimated 1–2% of GDP, represents a sharp short-term shock with broad implications for livelihoods, small enterprises, and fiscal stability.”
“While income earned in Thailand may be higher, not all income can be sent back to Cambodia. According to our estimate, MWs spend around 50%~60% of their income on consumption within Thailand, while sending the remaining to their family in Cambodia through remittance.”
“In 2026, if 20% of the returning MWs (i.e. 160,000) can be successfully absorbed into the domestic workforce, the economic contribution from this additional labor will more than offset the contribution from remittance of the entire 800,000 returning MWs, pushing the real GDP growth in 2026 up by 1.3%pt.”
https://yuantacambodia.com.kh/yuantaReport.php?Special%20Report&report=1126