The COVID-19 pandemic is having a negative impact on CLMV economies through their dependency on foreign-sourced revenue from tourism and exports says KResearchCenter.
While the COVID-19 crisis has caused the rate of economic growth in the CLMV bloc to be at its lowest in two decades, the CLMV economies could grow at 3.4 percent this year.
Overall, the CLMV economies will tend to undergo a speedy recovery over the next 1 to 2 years – with economic growth projected to reach 6.4 percent in 2021 and 6.5 percent in 2022.
Countries which are heavily dependent on foreign revenue are facing more negative effects during this crisis.
Cambodia is the most severely affected country
Cambodia is the most severely affected country, as it is extremely reliant on foreign income through tourism and exports. Tourism is expected to shrink by an estimated 60 percent this year. Meanwhile, in terms of exports, Cambodia remains most dependent on the EU and US markets. Both the United States and the EU bloc are currently most vulnerable to the spread of COVID-19.
Therefore, the value of…