Phnom Penh: After the momentum of the last two decades, Cambodia's economic growth Expected to fall to 2.3% for 2020. This trend is due to the Corona virus epidemic (KOV 19 – COVID-19), the economic slowdown of major countries as well as the People's Republic of China is affected by the disease and a decline in export markets. This is a projection in the Asian Development Bank's Asian Economic Outlook (ADB), released today (April 3). 2020).
Sunniya Durrani-Jamal, ADB Country Director for Cambodia, said: 'Cambodia's economy is expected to grow by 5.7% by 2021 if the epidemic ends. Economic activity will return to normal. ”
"The Royal Government of Cambodia has taken appropriate measures to meet the challenges of the previously untested Kuwaiti 19, such as: Garment workers' support as well as tax relief for businesses. The government also sets aside funding for necessary interventions to reduce the impact of this crisis on the national economy, especially on vulnerable populations. ”
By 2020, Cambodia's services sector will shrink by about 1.7 percent due to the tourism deficit and slowing property growth. Industrial growth is projected to slow to 6.5% due to lower production of garments for export as well as a slowdown in construction. Inflation is expected to remain at an average rate of 2.1% by 2020 as growth slows and inflation remains low for the year. 2021 Due to lower international oil prices. ADO Report Highlights Government's Commitment to Diversify the Financial Sector beyond the Banking System and Establishs a Domestic Market to Provide the Financing Needed Investment diversification and growth.
Durrani-Jamal says the government should focus on curbing the disease 19 otherwise the tourism recovery And service will be difficult. The government can use the ADB's package of $ 6.5 billion to be announced on March 18 Wick 19. The ADB budget is intended for the urgent needs of developing countries to address economic and social protection.
Under the Country Partnership Strategy, 2019-2023, ADB will provide $ 1.45 billion in the form of loans, grants, grants, and Technical assistance for agriculture and natural resource management improves living conditions in urban and rural areas, infrastructure, renewable energy Level and to improve education and skills. These initiatives aim to improve access to services and quality of services for Cambodians as well as the business environment.