The Asian Development Bank (ADB) today approved a $250 million loan to help the Government of Cambodia respond to the coronavirus disease (COVID-19) pandemic by strengthening the country’s health care system, increasing social assistance to the poor and vulnerable, and providing economic stimulus to businesses, including small and medium-sized enterprises.
“This assistance will help the government mitigate the adverse health, social, and economic impacts of the pandemic,” said ADB President Masatsugu Asakawa. “Cambodia has a record of sound macroeconomic management but COVID-19 threatens to undermine progress in poverty reduction, especially among vulnerable groups such as women and migrant workers. This loan is part of ADB’s long-term engagement plan that focuses on supporting Cambodia’s economic recovery and fiscal sustainability.”
Cambodia is highly vulnerable to the negative impacts from COVID-19, due to its open economy, narrow economic base, and highly mobile population. ADB expects Cambodia’s economy to contract by 5.5% in 2020 due to the decline in tourism; lower exports of garments, footwear, and travel goods; and a slowdown in construction activity. The downturn risks pushing an additional 1.3 million people into poverty.