A system for controlling the clearance distance between an impeller blade tip of a centrifugal compressor and a radially inner surface of an impeller shroud in a turbine engine. The system comprises a two-piece integral impeller shroud with a fixed inner member and a variable outer member. An actuator is coupled to an aft end of the variable outer member and imparts axially forward and aft motion on the aft end, causing deflection of the outer member.