The International Monetary Fund (IMF) has sharply downgraded its economic outlook for Cambodia, forecasting a slowdown in growth to 3% and a doubling of inflation to 5.6%. The US-based fund attributes these revisions to rising energy prices, which are expected to exacerbate existing challenges such as the Thai border conflict and issues related to the cyber scam industry.

Cambodia’s textile and garment sector, a key pillar of the Southeast Asian nation’s economy, continues to face pressures amid these economic headwinds. Workers at a China-funded factory in Kampong Chhnang Province exemplify the sector’s ongoing importance despite the difficult environment.

The IMF’s warning highlights the compounded risks to Cambodia’s economic stability, emphasizing the need for careful policy responses to mitigate inflationary pressures and support growth.

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