ADB revises 2020 growth forecast for Cambodia upward

Illustrative image (Photo: Internet)

Phnom Penh (VNA) – The Asian Development Bank has revised its 2020 growth forecast for Cambodia upward thanks to the country’s improved agricultural performance and an increase in volume in non-garment manufacturing exports such as bicycles and electronics.

In its Asian Development Outlook (ADO) 2020 Update, the bank forecast a 4.0 percent contraction for Cambodia’s gross domestic product in 2020, compared to its June forecast of a 5.5 percent contraction.

ADB expects growth to rebound to 5.9 percent in 2021, boosted by supportive government policies, social assistance for the poor, and financing support for small and medium-sized enterprises, according to ADB Country Director for Cambodia Sunniya Durrani-Jamal.

He said those measures, along with much-needed structural reforms, will reduce the direct and indirect impacts of COVID-19 on families and businesses, and help Cambodia’s economy emerge stronger from the pandemic.

According to ADB economist David Freedman, while Cambodia’s tourism and garment industry suffered heavy blows from COVID-19, non-garment production has posted a strong growth, especially bicycles and electronics. Exports of agricultural products, including rice, also surged, and may increase further when Cambodia sign free trade agreements with China, the Republic of Korea and other potential partners.

The ADB is supporting the Government of Cambodia’s response to the pandemic and has provided $250 million in concessional financing to strengthen health systems, expand social protection, and support economic recovery./.