{
  "title": "External Drivers of Credit Cycles in Cambodia",
  "publication": "Selected Issues Papers, January 8, 2026",
  "sourceUrl": "https://www.imf.org/en/publications/selected-issues-papers/issues/2026/01/08/external-drivers-of-credit-cycles-in-cambodia-573049",
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  "summary": "This paper investigates the external drivers of Cambodia’s credit cycles using a dynamic factor model. Results indicate that common global and regional factors explain over 60 percent of credit growth variance, reflecting one of Asia’s highest sensitivities to external conditions.",
  "sections": [
    {
      "heading": "Main findings",
      "content": "- Common global and regional factors explain over 60 percent of credit growth variance in Cambodia.\n- Cambodia exhibits one of Asia’s highest sensitivities to external conditions.\n- External shocks—including US monetary policy, global risk sentiment, and China’s growth—transmit primarily through a common global credit channel rather than direct bilateral linkages.\n- Cambodia’s high exposure to the global financial cycle is amplified by a highly dollarized economy."
    },
    {
      "heading": "Methodology",
      "content": "- The paper uses a dynamic factor model to investigate the external drivers of Cambodia’s credit cycles."
    },
    {
      "heading": "Key statistics and publication metadata",
      "content": "- Pages: 13\n- Volume: 2026\n- Issue: 002\n- Series: Selected Issues Paper No. 2026/002\n- DOI: https://doi.org/10.5089/9798229034708.018\n- Stock No: SIPEA2026002\n- ISBN: 9798229034708\n- ISSN: 2958-7875\n- Author: Natasha X Che\n- Publication date: January 8, 2026"
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- The high exposure to the global financial cycle highlights the necessity of macroprudential policies to manage domestic volatility in Cambodia’s highly dollarized economy.\n\nExternal Drivers of Credit Cycles in Cambodia — Selected Issues Papers (Natasha X Che, January 8, 2026)\n\n---\n\n Content in this bundle\n\n- External Drivers of Credit Cycles in Cambodia\n  - External Drivers of Credit Cycles in Cambodia (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - External Drivers of Credit Cycles in Cambodia (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/selected-issues-papers/issues/2026/01/08/external-drivers-of-credit-cycles-in-cambodia-573049"
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    "Authors: Natasha X Che",
    "Published: January 8, 2026",
    "Series: Selected Issues Papers",
    "DOI: https://doi.org/10.5089/9798229034708.018",
    "Common global and regional factors explain over 60 percent of credit growth variance in Cambodia.",
    "Cambodia exhibits one of Asia’s highest sensitivities to external conditions.",
    "External shocks—including US monetary policy, global risk sentiment, and China’s growth—transmit primarily through a common global credit channel rather than direct bilateral linkages.",
    "Cambodia’s high exposure to the global financial cycle is amplified by a highly dollarized economy.",
    "The paper uses a dynamic factor model to investigate the external drivers of Cambodia’s credit cycles.",
    "Pages: 13",
    "Volume: 2026",
    "Issue: 002",
    "Series: Selected Issues Paper No. 2026/002",
    "DOI: https://doi.org/10.5089/9798229034708.018",
    "Stock No: SIPEA2026002",
    "ISBN: 9798229034708",
    "ISSN: 2958-7875",
    "Author: Natasha X Che",
    "Publication date: January 8, 2026",
    "The high exposure to the global financial cycle highlights the necessity of macroprudential policies to manage domestic volatility in Cambodia’s highly dollarized economy.",
    "**External Drivers of Credit Cycles in Cambodia**"
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