Cambodia: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Cambodia

Author: International Monetary Fund. Asia and Pacific Dept

Volume/Issue: Volume 2025 Issue 317

Publication date: December 2025

ISBN: 9798229027755

$20.00

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Topics covered in this book

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Exports and Imports , Finance , Economics- Macroeconomics , Money and Monetary Policy , Public Finance , Imf executive board , governance reform , government finance , Cambodian authorities , government effort , de-dollarization strategy , monetary policy effectiveness , Financial sector stability , Exports , Global

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Summary

The 2025 Article IV Consultation discusses that Cambodia’s economy continued to accelerate in 2024, and growth reached 6.0 percent, bolstered by a strong rebound in garment and agricultural exports and a continued recovery in tourism. Economic growth is projected to decelerate to 4.8 percent in 2025 and further to around 4.0 percent in 2026. The downward revision from the 2024 Article IV staff report reflects remittance losses and a tourism slowdown, which are expected to weigh on domestic demand. Tariff effects will lower export earnings as manufacturers face margin pressures. Risks are tilted to the downside, driven by financial sector vulnerabilities associated with the array of shocks. Trade policy uncertainty could further disrupt export growth. Renewed border tensions could undermine confidence, amplifying adverse effects on domestic demand, tourism, and financial sector stability. Successful reintegration of returned workers into the domestic labor market could support a stronger recovery in domestic demand.