The World Bank announced that this year, Cambodia's Economic Growth was only 2.2%.
The World Bank has lowered its forecast for Cambodia's economic growth in 2021.
In general, Since covid-19 has been spreading all around the world there are many countries have lost human resources, and financial and especially economic growth slow down.
Therefore, in the Phnom Penh City of Cambodia, the World Bank lowered its forecast for Cambodia's economic growth from 4% to 2.2% in 2021. Earlier this year, the International Monetary Fund forecast that Cambodia's economic growth there will be 4% in 2021. The World Bank slows World Bank growth in Cambodia, while the government has changed its forecast from 4% to 2.4%, and Asian Development Bank has down its forecast from more than 4% to 1.9%. This was changed in forecasts by both the state and development partners now stems because Covid - 19 has been spreading since February 20 community event.
According to a report released by the World Bank on September 28, Cambodia is increasing of covid - 19 cases that have made economic growth slow. especially in the services, construction, and real estate sectors. The growth forecast for 2021 has been revised to 2.2 percent, Even though the exportation has been supported by good external demand.
The World Bank informed that this Covid - 19 has continued since the second semester of 2021, and has slowed economic recovery, especially in the services, construction, and real estate sectors. Tourism and transportation, which are estimated to provide about 2 million jobs and account for a quarter of GDP during the pre-epidemic period, are almost completely gone. Unemployment is exacerbated by the growing number of migrant workers returning from abroad.
Mr. Ly Sodet a senior economist of the World Bank in Cambodia on 28 September 2021 said that The Cambodian economy has been shaken since the covid - 19 pandemic and the Cambodian economy hasn't been able to return to growth of 7% as before the crisis.
in fact, in 2022, the economic growth will be only 4.5%, while in 2021, there was growth projected to be 2.2%. He said economic growth could return to before if the Covid - 19 is measured were brought under control, and so far none of the countries in the world has been able to prevent this disease situation.
Ms. Maryam Salim, another philosopher World Bank economist also said that the reopening of Cambodia's tourism, such as the opening up of businesses in the private sector, was crucial to economic recovery. The re- opening of the tour will also focus on those who have been vaccinated, but many countries haven't reopened, because even vaccinated people still be infected, that's why it is not reopened either.
In 2022, the Royal Government, the World Bank, and the Asian Development Bank have expected the Cambodian economy will grow faster than before. They expected and suggest that Cambodia's economic growth next year will be around 4 to 6 percent.