ADB Lowers 2021 Cambodia Growth Forecast to 1.9%, Jumping Back to 5.5% in 2022

• 23 September 2021
• Local News
• 2460 Views

The Asian Development Bank (ADB) has lowered the 2021 Cambodia economic growth forecast from 4% to 1.9% but expects to see a 5.5% to the growth rate in 2022.

According to the Asian Development Outlook Update (ADOU) 2021 report, the main factors causing the lower growth rate are the prolonged pandemic, closures and temporary shutdowns which affected domestic demand services, and the garment sector at the beginning of the year.

Despite the low forecast, the construction sector activity began to recover, with imports of construction materials increasing by 23.5% t in the first half of 2021 compared to the same period last year.

Meanwhile, exports of clothing, goods, travel, and footwear in the first half of 2021 were lower than before, although higher than in 2020

The report added the COVID-19 outbreaks in the country have also disrupted the agricultural supply chain, but the impact has been limited.

Industrial growth is projected at 5.3% in 2021, driven by the possibility of increasing exports of garments, travel and footwear and the strength in other manufacturing sectors.

• Business and Market
• Economy and Finance