ADB Expects Service Sector to Shrink by 1.7 Percent Amid Global Pandemic

Cambodia’s service sector will be hit hard by the global economic shock of the Covid-19 pandemic, contracting 1.7 percent for the year, the Asian Development Bank said in its latest forecast.

In its biannual report released on Friday, the bank also projects that Cambodia’s GDP growth will decrease to 2.3 percent this year, as the country’s main drivers of growth — tourism, garment manufacturing and real estate — will be weighed down by slowdowns in foreign markets.

The economic shockwaves triggered by Covid-19 — which has now infected more than 1 million people worldwide — are expected to disrupt supply chains and reduce demand in the real estate sector and drastically cut the number of foreign arrivals.

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