Pandemic Dries Off US$3.6 bn in Investment Financing – Construction Sector FDI Inflow Drops by 10.6%

The COVID-19 pandemic crisis has reduced over US$3.6 billion in investment financing in Cambodia, or equivalent to 19.8% of total cash flow for 2020. In the meantime, FDI inflow to the construction and real estate sectors also dropped significantly by 10.6%.

According to a press release from the United Nations Development Program (UNDP) in Cambodia issued last week, the biggest financing sources that Cambodia has seen greatest contraction is from domestic revenue, foreign direct investment (FDI) and domestic investment from private sources.

The report analyses the components and trends of all of Cambodia’s inflows of financial resources, from the public, private, national, and international sectors.

In the meantime, according to the National Bank of Cambodia (NBC) report, total FDI inflows in 2020 also declined. Among them, FDI to the construction and real estate sectors, which accounts for 17% share of the total FDI, decreased by 10.6%.

Before the COVID-19 community outbreak in February 2021, the construction and real estate sectors were expected to gradually recover alongside FDI.

However, this expectation is now conditional on how the government contains the outbreak and how global economic activities will rebound in the second half of 2021. (Read more)

 

 

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