What is the biggest threat to Cambodian real estate this year?
What is the biggest threat to Cambodian real estate this year?
Government in contemplative mood as GDP projections for the kingdom adjust
Cambodian economic officials have made a more conservative forecast of the kingdom’s real estate prospects this year.
Cambodia’s real estate sector is projected to experience decelerating growth this year, at 8.2 percent compared with 9.5 percent last year, according to a report released this week by the country’s Ministry of Economy and Finance (MEF).
This is the biggest fall recorded among sectors in the country’s services industry, which also covers tourism as well as transportation and logistics. The services sector could end up growing by 6.29 percent this year, compared with a projected growth of 10.7 percent for the industrial sector, the MEF predicted.
“Relevant stakeholders have to work together to tackle it,” MEF secretary of state Vongsey Vissoth said at a government hearing yesterday in Phnom Penh.
Chheang Vanarith, director of MEF’s macroeconomic and fiscal policy department, chalked up the modest growth forecasts for real estate and construction this year to slowing demand and global economic uncertainties.
More: Southeast Asia’s tallest building announces new contractor
The World Bank estimated the country’s gross domestic product (GDP) growth at 7 percent last year, surpassing a June 2016 forecast by 0.1 percentage point. The institution currently projects a 6.9 percent growth for the kingdom this year.
Vissoth told forum participants that the Khmer government hopes to maintain a 7 percent GDP growth “as long as possible.” The MEP report expects total GDP in the kingdom to top USD22.3 billion this year.
“More needs to be done to promote foreign direct investment and local investment in the country’s crucial sectors so that GDP growth can be maintained at 7 percent,” said Vanarith.
Read next: Where does your country stand in a Trump presidency?
Source: Property Report