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• 1 day ago• Lim_Rothanaksambath
IMF Cuts Cambodia Growth Forecast to 3%, Flags Scam Money Laundering
PHNOM PENH — Sept. 29, 2026: The International Monetary Fund has downgraded Cambodia's growth outlook to 3.0 percent for 2026 and singled out scam-related money laundering as a risk to financial stability and the country's international reputation.
The assessment came in the IMF's 2026 Article IV consultation, completed by its Executive Board on Sept. 22, 2026.
The Fund said growth, which slowed to 5.3 percent in 2025, will ease further this year before recovering to 4.0 percent in 2027. It cited higher energy costs, weaker tourism and remittances, decelerating garment exports, subdued domestic demand and tighter financial conditions. Border tensions with Thailand cut land-based tourism and remittances and led to the return of nearly one million migrant workers.
Inflation is expected to remain elevated at 5.6 percent in 2026 before easing. The current account deficit is projected to widen sharply, though reserves remain adequate and public debt is sustainable with low risk of distress.
The IMF identified persistent scam activities as a key downside risk, saying they could weaken exports and tourism, deter investment and threaten financial stability. It called on the authorities to urgently identify and address possible links between criminal activity and banks, close gaps in licensing frameworks, and deepen understanding of how scam and human-trafficking proceeds are laundered. It also urged progress on a virtual asset regulatory framework.
On the financial sector, the IMF called for decisive balance-sheet repair and stronger non-performing loan resolution, noting that the end of regulatory forbearance has exposed asset-quality strains amid continued real estate weakness.
Fiscal policy should provide targeted support while maintaining sustainability, with broad fuel subsidies phased out as inflation eases. Monetary policy should stay agile, and structural reforms should focus on attracting higher-quality investment, upgrading skills and strengthening governance and the rule of law.
Source: International Monetary Fund
Reported by The Khmer Daily Network
The assessment came in the IMF's 2026 Article IV consultation, completed by its Executive Board on Sept. 22, 2026.
The Fund said growth, which slowed to 5.3 percent in 2025, will ease further this year before recovering to 4.0 percent in 2027. It cited higher energy costs, weaker tourism and remittances, decelerating garment exports, subdued domestic demand and tighter financial conditions. Border tensions with Thailand cut land-based tourism and remittances and led to the return of nearly one million migrant workers.
Inflation is expected to remain elevated at 5.6 percent in 2026 before easing. The current account deficit is projected to widen sharply, though reserves remain adequate and public debt is sustainable with low risk of distress.
The IMF identified persistent scam activities as a key downside risk, saying they could weaken exports and tourism, deter investment and threaten financial stability. It called on the authorities to urgently identify and address possible links between criminal activity and banks, close gaps in licensing frameworks, and deepen understanding of how scam and human-trafficking proceeds are laundered. It also urged progress on a virtual asset regulatory framework.
On the financial sector, the IMF called for decisive balance-sheet repair and stronger non-performing loan resolution, noting that the end of regulatory forbearance has exposed asset-quality strains amid continued real estate weakness.
Fiscal policy should provide targeted support while maintaining sustainability, with broad fuel subsidies phased out as inflation eases. Monetary policy should stay agile, and structural reforms should focus on attracting higher-quality investment, upgrading skills and strengthening governance and the rule of law.
Source: International Monetary Fund
Reported by The Khmer Daily Network
