
news report
IMF Sees Cambodia Growth Slowing to 3% as Inflation Rises
Staff project 5.6% inflation in 2026 and warn that energy prices, weak tourism, real-estate stress and trade uncertainty tilt risks to the downside.
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Staff project 5.6% inflation in 2026 and warn that energy prices, weak tourism, real-estate stress and trade uncertainty tilt risks to the downside.

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After Dhaka requested a new Fund-supported program, staff warned that growth could slip below 3% in the medium term without fiscal and banking reforms.

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The fund projects headline inflation at 2.9% this year and warns that energy disruption could deepen the combination of weaker activity and higher prices.

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The board completed two program reviews, extended both arrangements and projected economic growth to ease from 6% in 2025 to 4.7% in 2026.

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Staff expects the current account to move from a 4.1% deficit in 2025 to a marginal surplus, while warning that inflation remains well above target.

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The 2026 Article IV review projects inflation above 3.5% late this year, with growth recovering only gradually and risks tilted downward.

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The fund expects output to moderate from 2025's 7.7% pace while inflation moves toward the central bank's 5% target by the end of 2027.

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The Fund projects inflation at 2.9% in 2026 as imported energy costs and high public debt constrain the outlook.

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A World Bank update says stronger agricultural value chains could create 330,000 formal jobs over a decade, if infrastructure and business constraints ease.