Vehicles on a street in Phnom Penh capital of Cambodia (Photo: AFP/VNA) Phnom Penh (VNA) – Cambodia's economy is projected to contract 2 percent in 2020 but recover to a four percent growth next year, the World Bank forecast in its latest economic update for Cambodia entitled Restrained Recovery.
The bank said economic activities in the country are gradually returning to normal levels as social distancing measures are relaxed.
Consumption is being partly supported by government intervention, while inflation remains subdue and foreign direct investment inflows to projects in non-garment industries and agriculture have been rising thanks to free trade agreements that Cambodia has signed with partners.
According to the report, although total exports have been hit by the pandemic, exports of bicycles, electrical parts and vehicle parts and accessories are rising, and the export of rice and agricultural products have surged.
Domestic tourists have also supported a partial recovery of the travel and tourism industry, it said.
However, WB country manager for Cambodia Inguna Dobraja said significant uncertainty remains to Cambodia’s growth outlook. According to her, the most important policy goal must be to urgently regain jobs lost and suspended due to the pandemic./.
VNA
