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ADB: Revised forecast says economy to plunge this year

Harrison White / Khmer Times Share:
ADB Cambodian Country Director Sunniya Durrani-Jamal speaking on Wednesday via video link. ADB

The Asian Development Bank (ADB) has revised its 2020 Cambodian growth forecast to minus 4 percent from its previous prediction of minus 5.4 percent in June because of improved agricultural performance and increased volume of non-garment manufacturing.

It added that it expects the local economy to rebound 5.9 percent in 2021. However, it stated that this prediction was very uncertain and would depend on the pandemic being brought under control by next year.

It was projected that inflation would remain relatively stable at 2.1 percent in 2020 before falling to 1.8 percent in 2021 because low oil prices are keeping transport and production costs down. It did not re-evaluate its July prediction that Cambodia would lose 390,000 jobs.

The development bank outlined that a continued slowdown in construction and garment industries, as well as poor harvests from bad weather conditions, remained the country’s largest risk factors.

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