Illustrative image (Photo: internet) Phnom Penh (VNA) - Cambodia’s GDP growth is projected to drop 0.3 percent due to the impact of the COVID-19 pandemic and economic slowdowns in China, the EU and the US, Moody’s Investors Service has said.
According to Moody’s Vice President and Senior Analyst Anushka Shah, Cambodia is particularly exposed to a slowdown in China given their extensive economic linkages.
China represented 43 percent of foreign direct investment in Cambodia while Chinese tourists accounted for 36 percent of arrivals to the Southeast Asian nation in 2019, he said.
Moody’s said Cambodia’s latest credit profile reflected the country’s “solid growth prospects” as well as its “moderate and highly affordable debt burden.”
Economic slumps in the EU and the US “will hurt demand for Cambodian goods” and that any sharp decline in asset prices “could pose economic and financial stability risks”.
However, the US credit rating agency also forecast that Cambodia’s GDP will rebound by almost 6.0 percent in 2021.
The overall outlook for the country is “stable,” it said./.
VNA
