GDP Growth to Shrink to 2.5% Amid Pandemic, World Bank Projects

Cambodia’s GDP growth this year could drop to its lowest rate in more than a decade, the World Bank projects, with some economic experts warning that the country’s reliance on international markets could slow recovery.

In a report released on Tuesday, the World Bank suggests that this year’s GDP growth could slump to 2.5 percent — or as low as 1 percent in a worst-case scenario — as Cambodia’s key tourism, construction and garment industries suffer sharp declines due to the global economic recession caused by the Covid-19 pandemic.

Cambodia’s risks to near-term growth include a “drastic slowdown” in foreign direct investment (FDI), with about 40 percent of FDI inflows coming from China, where the novel coronavirus was first detected late last year, the bank said.

In full: https://vodenglish.news/gdp-growth-to-shrink-to-2-5-amid-pandemic-world-bank-projects/

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