NBC: Building material imports to continue growing in 2020

• 6 January 2020
• Local News
• 6710 Views

Imports of building materials are projected to continuing growing in 2020, according to the National Bank of Cambodia, an indication of the sustained health of the construction sector.

According to the Macroeconomic and Banking for 2019 and 2020 Outlook report of the National Bank of Cambodia (NBC) issued on 03 January, the construction sector is projected to be one of the main economic drivers of Cambodia’s economic growth in 2020.

The outlook stated that imports of construction material accounts for over 50% of the total valued at US$1.4 billion and that imports of cement alone is valued at US$200 million, accounting for close to 10%.

The report also notes that imports of steel accounted for close to 40% or US$800 million in value.

“The construction and real estate sector continues to grow which is reflected by a trend of increasing imports of building materials and approved construction projects,” the NBC report said.

There were 4,446 projects construction projects in 2019, a 55% increase compared to the year before, while investment totalled US$9.3 billion, a 78% increase, according to report from the Ministry of Land Management, Urban Planning, and Construction.

In 2019, imports for construction sector value were estimated at US$1.5 billion, according to the NBC, citing that building material imports were valued at US$900 million, imports of cement were estimated at over US$100 million, and imports of steel were estimated at US$500 million,

According to the NBC, Cambodia’s economic growth in 2020 is projected at 7%, dropping down from an estimated 7.1 percent in 2019.