World Bank: Cambodia’s economic growth to slow to 2.5% in 2020 due to COVID-19

• 1 April 2020
• Local News
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Cambodia’s economic growth is predicted to decrease by 2.5% in the first quarter of 2020, due to inactivity in the tourism and construction sectors resulting from the outbreak of the COVID-19 pandemic in the country.

The World Bank released an Economic Update for East Asia and the Pacific in the time of COVID-19 report on Tuesday 01 April estimating the economic impact of the virus pandemic.

“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 reads.

“Growth is projected to slow sharply to 2.5% in 2020 under the baseline scenario. Major factors of this decline include a COVID-19 outbreak, resulting in a considerable decrease in tourist arrivals and foreign direct investment in the country which leads construction and real estate sector to slow down,” the report continued.

Cambodia’s growth last year was strong at 7.1%, according to the bank’s East Asia and Pacific Economic Update.

However, the World Bank predicted that Cambodia’s growth will recover to 5.9% in 2021 due to the resurrection of China’s economic activities and major markets next year.

In March 2020, Cambodian Prime Minister Hun Sen decided to postpone all construction projects throughout the country which have not yet been broken ground, except for sites under foreign financing or with the Cambodian budget as a measure to fight the COVID-19 outbreak. (Read more)

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