Cambodia Economic Update, May 2020 : Cambodia in the Time of COVID-19
The global epidemiological and economic crisis unleashed by COVID-19 (Coronavirus) poses the greatest threat to Cambodia’s development in its 30 years of modern history. The three most affected sectors - tourism, manufacturing exports, and construc...
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| Format: | Report |
| Language: | English |
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World Bank, Phnom Penh
2020
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| Online Access: | http://documents.worldbank.org/curated/en/165091590723843418/Cambodia-Economic-Update-Cambodia-in-the-Time-of-COVID-19-Special-Focus-Teacher-Accountability-and-Student-Learning-Outcomes http://hdl.handle.net/10986/33826 |
| Summary: | The global epidemiological and economic
crisis unleashed by COVID-19 (Coronavirus) poses the
greatest threat to Cambodia’s development in its 30 years of
modern history. The three most affected sectors - tourism,
manufacturing exports, and construction - contributed more
than 70 percent of growth and 39.4 percent of total paid
employment in 2019. Therefore, in the current year,
Cambodia’s economy is likely to register its slowest growth
since 1994, contracting between -1 percent (baseline) and
-2.9 percent (downside). Poverty can increase between 3 and
11 percentage points from a 50 percent income loss that
lasts for six months for households engaged in tourism,
wholesale and retail trade, garment, construction, or
manufacturing. The fiscal deficit can reach its highest
level in 22 years, and public debt is expected rise to 35
percent of gross domestic product (GDP) by 2022. The
authorities have introduced emergency measures to contain
the outbreak and provide fiscal assistance to affected
households, workers, and enterprises. To facilitate a robust
recovery, the government will need to continue to ensure
macroeconomic and financial sector stability and accelerate
trade and investment reforms as well as encourage faster
adoption of digital technologies. |
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