Search

Search form

Logo of Phnom Penh Post newspaper Phnom Penh Post - World Bank cuts growth forecast

World Bank cuts growth forecast

World Bank cuts growth forecast

The World Bank predicted Wednesday that Cambodia’s economy would contract 2 percent this year as a result of the global economic slowdown, leading to a reversal in some of the human development gains of the last decade.

The forecast, in the bank’s twice-yearly “East Asia and Pacific Update”, came as it predicted a 6.7 percent recovery for developing East Asia and the Pacific on the back of projected growth of 8.7 percent in China.

However, with China removed from the picture, the region was set to expand just 1 percent this year, more slowly than South Asia, the Middle East and North Africa, and only slightly faster than sub-Saharan Africa.

The World Bank predicted in April’s update that Cambodia’s economy would contract 1 percent this year.

The report estimates that 14 million people who would have emerged from $2-a-day poverty if the region’s economies had kept growing at pre-economic crisis levels, will remain in poverty in 2010. Developing East Asia includes China, Indonesia, the Philippines, Thailand, Vietnam, Cambodia, Laos, Mongolia, Papua New Guinea and the island economies of the Pacific.

“Cambodia has been very hard hit,” Ivailo Izvorski, the report’s lead author said via videoconference from Washington. The report projects that the economic crisis could add between 1 and 4 percentage points to the poverty headcount between 2007 and 2010, even though only one-fifth of all households had jobs in sectors directly affected by the crisis.

“There is currently limited data on human development outcomes, but preliminary indications and experiences in other countries suggest that the impact will be a reversal of the very encouraging trends of the past decade,” the report said.

Related Story: Structural problems causing garment woes: World Bank

RECOMMENDED STORIES

  • Breaking: PM says prominent human rights NGO ‘must close’

    Prime Minister Hun Sen has instructed the Interior Ministry to investigate the Cambodian Center for Human Rights (CCHR) and potentially close it “because they follow foreigners”, appearing to link the rights group to the opposition Cambodia National Rescue Party's purported “revolution”. The CNRP - the

  • Rainsy and Sokha ‘would already be dead’: PM

    Prime Minister Hun Sen on Sunday appeared to suggest he would have assassinated opposition leaders Sam Rainsy and Kem Sokha had he known they were promising to “organise a new government” in the aftermath of the disputed 2013 national elections. In a clip from his speech

  • Massive ceremony at Angkor Wat will show ‘Cambodia not in anarchy’: PM

    Government officials, thousands of monks and Prime Minister Hun Sen himself will hold a massive prayer ceremony at Angkor Wat in early December to highlight the Kingdom’s continuing “peace, independence and political stability”, a spectacle observers said was designed to disguise the deterioration of

  • PM tells workers CNRP is to blame for any sanctions

    In a speech to workers yesterday, Prime Minister Hun Sen pinned the blame for any damage inflicted on Cambodia’s garment industry by potential economic sanctions squarely on the opposition party. “You must remember clearly that if the purchase orders are reduced, it is all