Vehicles on a street in Phnom Penh capital of Cambodia (Photo: AFP/VNA)Phnom Penh (VNA) – Cambodia's economy is projected to contract2 percent in 2020 but recover to a four percent growth next year, the WorldBank forecast in its latest economic update for Cambodia entitled RestrainedRecovery.
The bank said economic activitiesin the country are gradually returning to normal levels as social distancingmeasures are relaxed.
Consumption is being partlysupported by government intervention, while inflation remains subdue andforeign direct investment inflows to projects in non-garment industries andagriculture have been rising thanks to free trade agreements that Cambodia hassigned with partners.
According to the report, althoughtotal exports have been hit by the pandemic, exports of bicycles, electricalparts and vehicle parts and accessories are rising, and the export of rice andagricultural products have surged.
Domestic tourists have alsosupported a partial recovery of the travel and tourism industry, it said.
However, WB country manager forCambodia Inguna Dobraja said significant uncertainty remains to Cambodia’sgrowth outlook. According to her, the most important policy goal must be tourgently regain jobs lost and suspended due to the pandemic./.
VNA
