IMF Staff Country Reports

The 2024 Article IV Consultation highlights that Cambodia’s economy has continued to recover, albeit at a modest pace. The sharp slowdown in credit growth has exposed the economy to increased financial sector vulnerabilities. Policy formulation must ensure a durable and inclusive recovery in the near term and achieving development goals over the medium term. Real gross domestic product growth is projected at 5 3/4 percent in 2025, up from 5 1/2 percent in 2024, supported by the continued recovery in exports and tourism. The neutral stance is appropriate in the near term, while a gradual and high-quality consolidation to build buffers is critical over the medium term. Monetary policy needs to resume normalization at a calibrated pace, with a focus on ensuring financial stability and supporting de-dollarization. Structural reforms need to focus on diversifying growth drivers. Strengthening governance frameworks to improve transparency and enhancing the institutional capacity to address data limitations will lend support to structural transformation.