Cambodia Lowers Growth Forecast to 2.5% for 2021; Property Sector Remains Uncertain

• 3 August 2021
• Local News
• 1933 Views

Cambodian Prime Minister Samdech Hun Sen has lowered the kingdom’s forecasted economic growth from 4% to only 2.5% this year, due to the severe impact of the COVID-19 pandemic.

Samdech Hun Sen explained that this growth will be mainly supported by the agricultural sector as the export of agricultural products has increased more than expected.

The Council for the Development of Cambodia also continues to approve more new investment projects, while the tourism sector is also expected to see positive growth after the vaccination campaign is complete.

Nevertheless, the real estate market in Cambodia remains under pressure and is still facing a high degree of uncertainty despite the very impressive vaccine roll-out by the government

According to the CBRE report issued in July, only 5 out of 17 projects expected in 2021 have been completed, while the completion forecast for 2021 also dropped from 10,825 units to only 7,909 units.

The retail market has also witnessed significant struggles in H1, with occupancy dipping 4.6% over the six months, to 71.5% on average. Likewise, the office market saw a 3.8% drop in occupancy rates. (Read more)

• Analysis
• Economy and Finance