Cambodia’s growth forecast increases to 4.8% from 4.5%

Recovery is expected to persist until 2023 on the back of ongoing governmental support and continued recovery of the tourism industry

The World Bank (WB) recently increased Cambodia’s 2022 growth forecast to 4.8 percent, up from 4.5 percent in April, according to the Phnom Penh Post.

The International Monetary Fund (IMF) also revised its 2022 growth forecast for the Kingdom’s real GDP, but instead of going up, it went down to five percent from 5.1 percent in late April. It also reduced its 2023 estimate to nearly 5.5 percent from over six percent earlier in the year.

The head of the IMF mission in Cambodia, Alasdair Scott, noted that the Kingdom’s economy has been improving, however, it has to overcome new challenges. In 2H 2021, GDP growth picked up primarily due to exports of goods.

Despite the difficulties, recovery is expected to persist until 2023 on the back of ongoing governmental support and continued recovery of the tourism industry.

Based on projections from the World Bank for 2023, Cambodia’s economic growth is expected to reach 5.2 percent, boosted by improving employment rates, government consumption, and a retreat from inflation.

Meanwhile, Khmer Times reported that FDI in construction in Cambodia went from USD260 million in 2020 to USD334 million in 2021. During this period, industrial and economic activities were still expanding despite facing the worst days of the pandemic.

More: Cambodia shows strong recovery in the property sector and foreign investments

A 6.3 percent expansion is expected in the construction sector in 2022, followed by a 9.4 percent expansion between 2023 and 2026. Strong demand for real estate along with ongoing investments in the infrastructure, commercial, and residential sectors have contributed to the forecast.

As one of the pillars of the country’s economy, construction plays a crucial role. According to the Ministry of Land Management, Urban Planning and Construction (MLMUPC), USD66.2 billion dollars have been invested in 57,590 construction projects across the country between 2000 and 2022.

The Property Report editors wrote this article. For more information, email: [email protected].