Cambodia’s economy could contract by nearly 3% in 2020

The Cambodian economy, which is heavily reliant on the garment industry, could contract by nearly 3% this year as a result of the Covid-19 pandemic, a new report has found, with the collapse of growth drivers such as manufacturing exports.

The World Bank’s latest Economic Update for Cambodia shows the coronavirus is hitting the country’s main drivers of economic growth – tourism, manufacturing exports, and construction – which together account for over 70% of Cambodia’s growth and almost 40% of paid employment.

As a result, the economy in 2020 is expected to register its slowest growth since 1994, contracting by between -1% and -2.9%, according to the ‘Cambodia in the Time of Covid-19’ report.

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