Construction and real estate sector in Cambodia to grow slower in 2022: Report
But it shall eventually catch up with growth, supported by the inflows of domestic revenue and investment to Cambodia, says National Bank of Cambodia (NBC)
The year 2022 will be anything but bullish when it comes to the construction and real estate sector in Cambodia but it shall eventually catch up with growth, supported by the inflows of domestic revenue and investment to Cambodia, says a recent report on macroeconomic progress of the banking sector in 2021 and the outlook for 2022 of the National Bank of Cambodia (NBC).
Taking a view on the 2022 global economy, the report said it is expected to grow at a different rate depending on the effectiveness of prevention of the Covid-19 pandemic and the government’s support measures. The new Omicron mutation continues to be a major challenge, with existing risks such as geopolitical stress, trade and climate change.
Yet the NBC’s report says the continued recovery of the world economy will support Cambodia’s exports of garments and non-garments, especially exports of electronic components and bicycles, which will enhance Cambodia’s export diversification.
According to the National Bank, the agricultural sector, which absorbs nearly a third of the total workforce, is expected to continue to grow better than in 2021.
The coming into force of Free Trade Agreements will generate Cambodia-China and Cambodia-South Korea the needed potential of the agricultural sector, especially agro-processing and agro-industry.
In addition, the Regional Comprehensive Economic Partnership Agreement (RCEP), an agreement between the 10 ASEAN member states and free trade partners (Australia, New Zealand, China, South Korea and Japan), entered into force early this year and will provide opportunities for trade in services and goods, investment and e-commerce.
The reopening of the economy, domestic economic activity, including wholesale, retail, telecommunications and transportation, and domestic tourism is expected to increase steadily, while international tourism may gradually increase and require time and effort to let the sector grow as it did before the crisis.
The recovery of tourism will have a positive effect on the improvement of the hotel and restaurant sector and other support services.
The return of overseas workers in particular who have received training and experience have been contributing to improving productivity and domestic production, especially in agriculture and handicrafts.
The gradual improvement of the economy will support the government’s revenue, accumulate fiscal support, and especially boost public investment, which will provide returns for long-term growth. Khmer Times