(Phnom Penh): Cambodian Finance Minister Aun Pornmoniroth said Cambodia expects its economy to grow 4.2% in 2026, driven by strong performance in export-oriented manufacturing and resilient domestic consumption.

Speaking during the IMF Article IV Mission review on Tuesday (Jul. 7), the minister said stronger-than-expected non-garment exports, rising VAT collections, and higher consumer goods imports support the government's growth outlook. However, weaker international tourist arrivals continue to weigh on the tourism sector.

Meanwhile, the International Monetary Fund (IMF) lowered its 2026 growth forecast for Cambodia to 3%, citing external risks including Middle East tensions, the Cambodia-Thailand border dispute, the crackdown on online scam operations, and ongoing global economic uncertainty.

On the occasion, IMF Mission Chief Kenichiro Kashiwase said the government's timely fiscal support for vulnerable groups and affected sectors would help cushion the impact of these challenges. He also urged continued structural reforms to improve the investment climate, governance, export diversification, energy security, and data management.

To ease economic pressures, the government has introduced tax relief on selected imports, including fuel, and is preparing a comprehensive intervention program to protect livelihoods, create jobs, and strengthen economic resilience.
=FRESH NEWS