PHNOM PENH, Sept. 29 (Xinhua) -- Cambodia's economic growth is forecast to slow to 3 percent in 2026 from 5.3 percent in 2025, driven by surging energy costs, weakening tourism, and declining remittances, the International Monetary Fund (IMF) said on Tuesday.
The Southeast Asian nation, which relies heavily on garment, footwear, and travel goods exports, alongside agriculture, tourism, and real estate, faces a mounting combination of domestic and global headwinds.
"Growth is projected to slow to 3 percent in 2026 before recovering to 4 percent in 2027, reflecting higher energy costs, weaker tourism and remittances, decelerating garment exports, subdued domestic demand, and tighter financial conditions," the IMF said in a press release.
"Inflation is expected to remain elevated at 5.6 percent in 2026 before easing as energy prices normalize," it added.
The current account deficit is projected to widen sharply, although resilient foreign direct investment and adequate international reserves provide important buffers.
The IMF said risks to growth are tilted to the downside, including from renewed energy and trade disruptions, persistent scam activities, and a sharper real estate correction.
Potential disruptions from El Nino conditions could keep agricultural price pressures elevated, it added. ■
