IMF Sees Cambodia Growth Slowing to 3% as Energy and Credit Risks Build

Phnom Penh, 30 September 2026 – Cambodia’s economy is projected to expand just 3.0% in 2026, down from 5.3% last year, as higher energy costs, weaker tourism and remittances, slower garment exports and tighter financial conditions weigh on activity. The latest assessment from the International Monetary Fund also forecasts a recovery to 4.0% in 2027. These are projections, not recorded outcomes, and they are vulnerable to changes in fuel markets, trade conditions and domestic demand.

The 2025 growth figure showed resilience from manufacturing exports, foreign direct investment and infrastructure, but it masked a prolonged real-estate correction and subdued domestic spending. Border tensions with Thailand reduced land-based visitor flows and remittances, while the return of nearly one million migrant workers added pressure to household income and employment. The fund’s diagnosis therefore extends beyond a single external shock; it points to several strains occurring at once.