Cambodia is not exempted from COVID-19 and its impact. A forecast made by Asian Development Bank has suggested that Cambodia could be suffering the worst economic impact from COVID-19 among its fellow ASEAN member states comparing percentage of economic loss and Cambodia’s total GDP (Abiad et al, 2020). Based on the ADB report, Cambodia will see a loss of more than USD 390 Million, which is equivalent to 1.15% of the country GDP
In addition, a newly released annual economic report, Asian Development Outlook 2020 by Asian Development Bank Project that Cambodia could experience a big drop in its annual growth in 2020. The report indicated that Cambodia’s economic growth for 2020 could drop as low as 2.3% and rebound back to 5.7 % next year, supposing that all economic activities with return back to normal, and that there are no more pandemic. Similarly, another report by World Bank published on March 30, 2020 also predicts a similar economic situation for the country. Along with an economic assessment of East Asia Pacific countries in a 234-pages report, the World Bank indicated that Cambodia’s real GDP growth-at baseline scenario-will drop to 2.5% in 2020 as a repercussion of COVID-19 outbreak and will rebound back to 5.9% in 2021 (World Bank 2020).
The World Bank’s worst case scenario on Cambodia economy suggested that real growth will be as low as 1% in 2020 and recover to 3.9% in 2021, on the other hand, is possibly as low as 1% in 2020 and recover to 3.9% in 2021, according to the same economic assessment report on East Asia and Pacific countries. Source: Cambodia Development Center (Vol 2 Issue 3, 04 April 2020).
The Tourism industry, one of the top revenues generators for the economy, is currently taking a huge hit from is pandemic effect. As countries continue to close their borders or impose travel ban and restrictions, at the least airlines companies are grounded while hotels have the room mostly vacant, airports are now largely quite. Tourism industry, which account for about 10 % of global GDP, is holding into a collapsing ship. Up to thousand job the travel and tourism sector and now at risk losing.