ADB revises 2020 Cambodia Growth Forecast Upward, yet Construction Sector Still at Risk

The Asian Development Outlook (ADO) 2020 Update also projected that due to the pandemic, Cambodian GDP would drop by 4% in 2020, which is better compared to the previous forecast in June, estimating a 5.5%.

This economic improvement is due to the growth in the agricultural sector and the increase of non-garment products exports such as bicycles and electronics (30.3% year-on-year in the first half of 2020), says the report.

However, construction and the garment sector continued to slow down during June and July as the demand drop.

To cope with the pandemic, ADB also provided US$250 million to Cambodia in July to strengthen the health care system, expand social protection and support economic recovery.

According to related report, the construction material price has reduced too during the epidemic. As for agricluture  sector, the governement are taking efforts to seek cooperation from other countries to promote local agriculture.  Agriculture still the key sector for Cambodia economy.