Cambodia expected to recover from the global economic downturn with a GDP growth of 4% in 2021.
The unprecedented wave of the outbreak of Covid-19 caused sharp deceleration
in the main engines of growth in the Cambodian economy in the first half of 2020 due to the rapidly increasing Covid-19 cases worldwide. The number of Covid-19 cases globally rose from 10.2 million at the end of H1 2020 to 83.4 million at the end of H2 in 2020.
In the light of the pandemic events and global macroeconomic trends, Cambodia faced several issues, particularly to its key sectors that have been hit hardest by the outbreak including tourism, construction, and garment manufacturing, which together accounted for more than 70% of growth and 39% of total paid employment in 2019.
Both the pandemic and the withdrawal from EBA by the European Union have negatively affected export growth of the kingdom, which fell by 2.5% during the first nine months of 2020.