IMF Slashes Cambodia’s Economic Growth Forecast for 2025 and 2026 Amid New Headwinds

The International Monetary Fund (IMF) has significantly lowered its projections for Cambodia’s economic growth for both 2025 and 2026, according to a publication released on November 25, 2025. The previous growth forecast for 2025 stood at 6.2%, but this figure has now been revised downwards to 4.8%. Furthermore, the projected growth rate for 2026 has been cut sharply to just 4.0%.

The IMF’s five-year forecast document, spanning 2022 to 2026, highlighted a strong economic performance in 2024, when the Cambodian economy grew by a notable 6.0%. This positive momentum was largely driven by a clear recovery across the textile export, agriculture, and tourism sectors. The favorable trends initially led to an early mid-year estimation that Cambodia’s economic growth for the entire year of 2025 would reach 6.2%.

However, the updated forecast now explicitly states that economic growth is expected to slow to 4.8% in 2025 and further decelerate to 4.0% in 2026. The institution attributed this significant revision to negative factors impacting the national economy.

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