World Bank Lowers Cambodia's GDP 2021 Growth Forecast
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B2B Cambodia
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The World Bank has lowered the economic forecast for Cambodia to 2.2 per cent for 2021. In April 2021 the organisation has anticipated a 4 per cent GRP for the Kingdom.
The key reason for the downturn in economic growth predictions is due to the ongoing coronavirus infections and deaths, mainly caused by the Delta variant.
Cambodian government’s updated 2021 gross domestic product (GDP) growth forecast is 2.5 per cent, (down from 4.1 per cent), while the Asian Development Bank (ADB) has recently revised down the expected GDP for the Kingdom of Cambodia to 1.9 per cent.
The revised figures from the World Bank were released on September 28, 2021, and they added "Cambodia’s outlook remains highly uncertain and risks are tilted to the downside. Despite accelerated vaccination progress, risks of a protracted outbreak and further disruption remain high, given continued high numbers of infections and deaths."
World Bank’s High-Frequency Phone Survey of Households, indicated that the employment and income had not recovered to pre-pandemic levels in the Kingdom.
One of the positives was that the agriculture industry seemed to have remained resilient, as well as investment into Cambodia.
“The slower economic recovery and the adoption of food consumption reduction as the main risk coping strategy will undermine the ability to recover from the pandemic, which could reverse several years of progress against poverty reduction in Cambodia,” the World Bank said.
The Asian Development Bank (ADB) on September 22 also revised down its 2021 GDP growth forecast for the Kingdom to 1.9 per cent from its April prediction of 4.0 per cent but noted that growth is projected to accelerate to 5.5 per cent in 2022.
The key reason for the downturn in economic growth predictions is due to the ongoing coronavirus infections and deaths, mainly caused by the Delta variant.
Cambodian government’s updated 2021 gross domestic product (GDP) growth forecast is 2.5 per cent, (down from 4.1 per cent), while the Asian Development Bank (ADB) has recently revised down the expected GDP for the Kingdom of Cambodia to 1.9 per cent.
The revised figures from the World Bank were released on September 28, 2021, and they added "Cambodia’s outlook remains highly uncertain and risks are tilted to the downside. Despite accelerated vaccination progress, risks of a protracted outbreak and further disruption remain high, given continued high numbers of infections and deaths."
World Bank’s High-Frequency Phone Survey of Households, indicated that the employment and income had not recovered to pre-pandemic levels in the Kingdom.
One of the positives was that the agriculture industry seemed to have remained resilient, as well as investment into Cambodia.
“The slower economic recovery and the adoption of food consumption reduction as the main risk coping strategy will undermine the ability to recover from the pandemic, which could reverse several years of progress against poverty reduction in Cambodia,” the World Bank said.
The Asian Development Bank (ADB) on September 22 also revised down its 2021 GDP growth forecast for the Kingdom to 1.9 per cent from its April prediction of 4.0 per cent but noted that growth is projected to accelerate to 5.5 per cent in 2022.