Hit by the global economic slowdown and the loss of E.U. trade benefits, Cambodia’s economy is projected to contract 2 percent this year, with the World Bank warning that poverty rates will be on the rise regionwide.
In a new regional report on Asia-Pacific’s response to Covid-19 and the ensuing downturn, the World Bank said GDP growth would be hurt by record regional drops in exports and imports, expected to contract 12.6 percent and 8.9 percent this year, respectively.
Like other countries in the region, Cambodia has been heavily impacted by the global economic downturn, as the country’s key sectors — tourism, construction and retail exports — rely on the world economy and contributed to 70 percent of GDP growth and 39 percent of paid employment last year. Cambodia’s trade deficit will increase from 10 percent of GDP last year to 12.8 percent, the bank projected.