ADB Revises 2020 Cambodia Growth Forecast Upward, Construction Sector Still at Risk

• 25 September 2020
• Local News
• 3408 Views

The Asian Development Bank (ADB) recently re-forecast Cambodia’s economic growth to rebound to 5.9% by 2021, yet the construction and garment sectors remain at risk.

The Asian Development Outlook (ADO) 2020 Update also projected that due to the COVID-19 pandemic, Cambodian GDP would drop by 4% in 2020, which is better compared to the previous forecast in June, estimated at 5.5%.

This economic improvement is due to the growth in the agricultural sector and the increase of non-garment products exports such as bicycles and electronics (30.3% year-on-year in the first half of 2020), says the report.

However, construction and the garment sector continued to slow down during June and July as the demand dropped.

To cope with the pandemic, the ADB also provided US$250 million to Cambodia in July to strengthen the health care system, expand social protection and support economic recovery.

• Economy and Finance