IMF: Cambodia's economic growth projected to slow to 3 per cent

Phnom Penh (ANTARA) - Cambodia’s economic growth is expected to slow to 3 per cent in 2026 from 5.3 per cent in 2025, driven by surging energy costs, a weakening tourism sector, and declining remittances, the International Monetary Fund (IMF) stated on Tuesday (29/9).

The Southeast Asian nation, which is heavily reliant on exports of garments, footwear, and travel goods, as well as the agriculture, tourism, and real estate sectors, faces increasing challenges from both domestic and global sources.

“Growth is expected to slow to 3 per cent in 2026 before recovering to 4 per cent in 2027, reflecting higher energy costs, a weakening tourism sector and remittances, slowing garment exports, sluggish domestic demand, and increasingly tight financial conditions,” the IMF explained in a press release.

“Inflation is expected to remain high at 5.6 per cent in 2026 before easing as energy prices normalise,” the IMF added.

The current account deficit is projected to widen sharply, although strong foreign direct investment and adequate foreign exchange reserves provide an important buffer.

The IMF stated that risks to growth tend to be tilted to the downside, including due to recurring energy and trade disruptions, ongoing fraudulent activities, and a sharper correction in the real estate sector.

Potential disruptions caused by El Niño conditions could keep agricultural price pressures high, the IMF added.