Cambodia's economic growth is projected to slow sharply to 2.5 percent in 2020 due to the impact of the COVID-19 outbreak, according to a World Bank's report released on Tuesday.
The country's growth last year was strong at 7.1 percent, said the bank's East Asia and Pacific Economic Update.
"The outbreak caused sharp decelerations in most of Cambodia's main engines of growth in the first quarter of 2020, including weakened tourism and construction activity," the report said.
Downside risks included a local COVID-19 outbreak, a prolonged decline in tourist arrivals, drastic slowdown in foreign direct investment, and slowdown in construction and real estate sector, it added.
"The tourism sector has been hit hardest by the outbreak. Similarly, the garment industry is facing a global demand shock as well as partial withdrawal of the European Union's 'Everything But Arms' (EBA) trade preferential treatment," the report said.
"Spillovers to the construction and real estate sector -- one of Cambodia's growth drivers -- amid the financial market turmoil could potentially be detrimental to growth."
It said poverty reduction is expected to continue but at a slower pace.
Rebounds in economic activity in China and major markets in 2021 improves Cambodia's growth outlook next year, the report said, predicting that Cambodia's growth in 2021 will recover to 5.9 percent.
Cambodian Prime Minister Samdech Techo Hun Sen said earlier this month that the government has reserved up to two billion U.S. dollars to support the economy in case of any outbreak of the COVID-19.
Cambodia has so far recorded a total of 109 confirmed cases of COVID-19, said a Ministry of Health's statement on Tuesday, adding that 23 of them have recovered.
Source: Xinhua |
