Tuesday, May 13, 2025
Khmer Daily Cambodia News
34 °c
Phnom Penh
  • LATEST
  • CAMBODIA
  • ASIA
    • JAPAN
    • SOUTH KOREA
    • TAIWAN
  • WORLD
    • CHINA
    • RUSSIA
  • BUSINESS CAMBODIA
  • TECHNOLOGY
No Result
View All Result
  • LATEST
  • CAMBODIA
  • ASIA
    • JAPAN
    • SOUTH KOREA
    • TAIWAN
  • WORLD
    • CHINA
    • RUSSIA
  • BUSINESS CAMBODIA
  • TECHNOLOGY
No Result
View All Result
The Khmer Daily
No Result
View All Result
Home ASIA Cambodia

Asian Development Bank (ADB) projects a rebound in growth for Cambodia’s economy 2021

December 4, 2020
in Business, Cambodia, National
0
Asian Development Bank (ADB) projects a rebound in growth for Cambodia’s economy 2021
0
SHARES
38
VIEWS
Share on FacebookShare on Twitter

Asian Development Bank (ADB) has adjusted its medium-term outlook for Cambodia’s economy, projecting that it will contract by 4 percent by the end of the year.  ADB’s previous outlook had projected that the national economy would decline by 5.4 percent compared with last year, as a result of the ravages of the pandemic.

However, improved agricultural performance and an increased volume of non-garment manufacturing have brightened the medium-term economic outlook.

During the webinar presentation, “On Road Map to Recovery? Cambodia’s Economic Outlook for 2021”, hosted by EuroCham on Tuesday, ADB Cambodia Country Economist David Freedman said that Cambodia has managed the COVID-19 pandemic well and is positioned for recovery in 2021.

He added that well-timed interventions have helped minimise the local outbreak of COVID-19 and prudent macro-economic management has enabled the government to use fiscal policy to mitigate its negative impacts.

The government’s stimulus in 2020, equivalent to 3.1 percent of gross domestic product, included $60 million for health measures, $300 million for social protection and $455.8 million for economic stimulus, he added.

“Cambodia’s economy will contract by 4 percent year-on-year during 2020 and growth will rebound by 5.4 percent in 2021,” Freedman said.  He added that Cambodia is also diversifying its export capacity, which is key to future growth because Cambodia’s growth has been built on openness to trade.

Freedman added that the government has recognised that reforms will be needed in order to sustain growth rates after the 2020 pandemic.

Looking ahead, he said ADB identifies five fundamental drivers in sustaining the growth rate. First is a steady pace of reforms, on infrastructure, trade policies, skill developments, education, and an easing of the business enabling environment. The second driver is an improvement to infrastructure and logistics and the third is digitalisation and innovation.  Freedman noted that the ADB sees significant momentum in ecommerce and the digital economy. The fourth driver is a shift in regional value chains and market access, with the fifth being urbanisation and a growing middle class.

Freedman pointed out that while the Kingdom’s economy is contracting this year, 2021 will see recovery. By the end of 2021, though, he added the economy will be significantly smaller than it would have been if the pandemic had not happened. Freedman noted: “It is a shame that Cambodia will miss out on that growth. However, any downside risks can be managed and we could easily expect quite strong growth in the medium term.”

He added key risks to the outlook are focused on the pace of global recovery and domestic re-balancing. Among those risks are a slow recovery of tourism and consumer demand, a slowdown in construction and real-estate, rising poverty and inequality from the pandemic, household indebtedness-repayment and restructuring, skills shortages and skills gaps and any risks presented regarding climate change and water resources.

“I am not too pessimistic [though]. We are trying overall to be realistic and balanced [in projecting] that the outlook is positive, but there are some risks that need to be managed and watched carefully,” he added.

This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.

Tags: ADBAsian Development BankCambodiaCambodia’s economyCambodia’s economy 2021
Previous Post

Football in Cambodia: Netting new fans, scoring new revenue

Next Post

WHO fine-tunes advice on Covid masks for public and health workers

Related Posts

Neak Poan Temple is a destination for tourists to visit and take beautiful pictures

Neak Poan Temple is a destination for tourists to visit and take beautiful pictures

by Khmer Times
July 3, 2023
0
92

Neak Poan Temple is one of the most attractive tourist destinations among the ancient temples, which is located along the...

Cambodian pepper gains direct export rights to China

Cambodian pepper gains direct export rights to China

by Khmer Times
July 3, 2023
0
75

The Chinese Embassy in Cambodia announced today that Cambodian pepper has completed all export procedures to China, which means can...

Wrapped in blanket, dumped in pond: Top South Korean livestreamer found dead in Cambodia

Wrapped in blanket, dumped in pond: Top South Korean livestreamer found dead in Cambodia

by AsiaOne
June 14, 2023
0
100

One of South Korea's top livestreamers was recently found dead in Cambodia. Byeon Ah-young's body was discovered — wrapped in a...

Most Popular

$2 million electric motorbike assembly plant in Cambodia by Verywords Co Ltd launched

$2 million electric motorbike assembly plant in Cambodia by Verywords Co Ltd launched

May 30, 2023
48
EZECOM first to collaborate with AWS to provide leading Cloud service for Cambodia

EZECOM first to collaborate with AWS to provide leading Cloud service for Cambodia

March 15, 2022
43
Ford Cambodia, operated by RMA Cambodia, brings vehicles and technical training

Ford Cambodia, operated by RMA Cambodia, brings vehicles and technical training

September 1, 2020
56
Innovation key to Cambodia’s garment industry growth

Innovation key to Cambodia’s garment industry growth

December 3, 2021
16
Tire factory in Cambodia’s Sihanoukville Special Economic Zone officially launched

Tire factory in Cambodia’s Sihanoukville Special Economic Zone officially launched

May 23, 2023
95
Banana orchard tells China’s increasing role in Cambodia’s growth story

Banana orchard tells China’s increasing role in Cambodia’s growth story

June 12, 2023
59

© 2020 By Khmer Daily News

No Result
View All Result
  • Home
  • Latest
  • Cambodia
  • ASIA
  • World
  • Business
  • Tech

© 2019 The Khmer Daily.

error: Content is protected !!