New GDP prediction is not optimistic

The Asian Development Bank (ADB) has predicted that the real economic growth of Cambodia will reach 2.3 percent this year and will be around 5.7 percent in 2021, according to the newly released report on ADB’s flagship annual economic publication titled, Asian Development Outlook 2020.

The ADB says that after two decades of strong performance, Cambodia’s economic growth is expected to drop to 2.3 percent in 2020, as a direct result of the COVID-19 pandemic that will cause significant global slowdown to major economies such as China, the US and the European Union, resulting in the reduction of Cambodia’s access to vital export markets. “However, Cambodia’s economy is expected to rebound to 5.7 percent in 2021, assuming that the pandemic ends and economic activity normalises by the end of the year,” said ADB’s Country Director for Cambodia Sunniya Durrani-Jamal.

She added, “Facing unprecedented challenges posed by COVID-19, the Cambodian government has taken the right steps to respond to the crisis, including providing wage support for garment workers and tax and credit relief for businesses. The government has also created the fiscal space to minimise the economic impact of this crisis, especially on the most vulnerable people.”

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