Cambodia's economic sector hit severe

Defaults are expected to be highest in the hotel, gaming and leisure sector along with oil and gas. And all of these will affect globally including Cambodia, as now tourism, service, construction start affecting, especially during the COVID-19 pandemic.

In a statement issued in Hong Kong on 14th, the US-based global credit rating agency forecast a further increase in defaults to 11.3 percent by the end of next year. The global economy will decline sharply in the first half of this year, or it will continue to improve until the second half of the year, which is great pressure on countries such as Cambodia.

Moody’s Investors Service raised its default forecast for the end of the year Monday to 10.6 percent of the companies it rates, up from 3.5 percent in March.Moody’s Investors Service raised its default forecast for the end of the year Monday to 10.6 percent of the companies it rates, up from 3.5 percent in March.

As of the 14th, Cambodia has totally diagnosed 122 cases of new coronary pneumonia and a total of 91 cured cases. There are no new cases for three consecutive days. The number of confirmed cases has dropped to 26. Although the confirmed cases are not too severe, but Cambodia still stay in alert.

The number of local confirmed cases in Cambodia is controllable, which has a great relationship with the local medical conditions, tracking and detection capabilities. Many infected people are not diagnosed in time in Cambodia. The current number of confirmed cases cannot fully represent the Cambodia COVID-19 situation.

The Cambodian Anti-Infectious Diseases Bureau announced that a small-scale community infection has occurred in Phnom Penh. The authorities urged the public to remain vigilant and never take it lightly. It is still unknown whether the Cambodian pandemic is under control or a large-scale outbreak.

In addition to the uncertainty of the local pandemic situation, the world, especially North America and Europe, are in the outbreak period. Cambodia has to introduce a number of measures, including restricting the entry of people from multiple countries, prohibiting cross-provincial movement, and prohibiting group activities. Influence on economy is inevitable.

In addition, the global economy has been hit harder and hit Cambodia more severe.

As a country highly dependent on foreign capital, the development of Cambodia in various fields is inseparable from the macroeconomic environment.

Among the pillar industries of Cambodia, tourism is one of the main sources of financial revenue, but the main support for Cambodia ’s tourism economy is foreign tourists, especially those from Europe, America, China, Japan, and South Korea. China is the largest source country of Cambodia. Affected by the intensified pandemic, countries around the world have basically implemented different immigration control measures to reduce unnecessary travel. In addition to the current increased risk of travel infections, the number of tourists to Cambodia has plummeted. The economy is inevitable.

The impact on the construction sector was relatively slow, and did not even have much impact in the early stages of the outbreak. As the pandemic continues to intensify and funding pressures increase, the progress of the project will be affected more or less. In the real estate industry related to it, with the evacuation of a large number of foreigners, the demand for local rentals has plummeted, and the pressure on foreign investment in various countries has increased, and the number of investors has also decreased. If Cambodia cannot maintain high GDP growth, the real estate industry may lose the economic environment on which it depends for a certain period of time.

The impact of the pandemic on trade is more direct, and the reduction in global trade demand has directly impacted the Cambodian textile industry. Cambodian textile products are mainly sold to Europe and the United States, and orders have been canceled in large numbers during the pandemic period. After solving the problem of raw materials, Cambodian factories face the crisis of no orders. In addition to the economic impact, the livelihood of a large number of Cambodian workers is also a problem. Not only Cambodia, but also affected by the pandemic, the textile industries of Southeast Asian countries and even China have been greatly affected. The Cambodian country is weak and bears greater economic pressure.

As the pandemic is not ended, the Cambodia economy, which is highly dependent on foreign investment, will be difficult to recover. Under the global body of destiny, the joint efforts to fight the pandemic can overcome the difficulties.