Construction Sector to Gradually Recover Amid 4% Economic Growth and Robust Financial Sector, says NBC

• Samphors Sao
• 31 December 2020
• Local News
• 3950 Views

The National Bank of Cambodia NBC said that the construction and property sectors in Cambodia will gradually recover in 2021, given the fact that the kingdom’s financial sector remains robust and the 2021 economic growth is forecasted at 4%.

According to the NBC Macroeconomic and Banking Sector Outlook for 2021 released on 31 December, the financial sector’s active asset, from which 90% is the banking sector, continues to grow and be resilient despite the pressures from the pandemic.

During the COVID-19 pandemic, the most affected sectors are tourism and garment export, followed by the construction and real estate sectors, says the report.

However, the report added that the construction and real estate sectors are expected to recover steadily, in line with foreign direct investment growth, revenue recovery, and overall economic growth in the future.

Nevertheless, the hotel, restaurant, and transportation sectors will also recover, yet at a slow pace due to the decline in international tourists.

The NBC has also forecasted that in the first half of 2021, the Cambodian economy is expected to grow at approximately 4%, while the inflation rate is expected to be below 3%, which is a manageable range.

Similarly, the World Bank has recently forecasted Cambodia’s economy will grow by 4% in 2021, while ADB positively foresees that growth will rebound by 5.4% in 2021, which makes major big developers including Neak Oknha Pung Kheav Se is optimistic about the construction sector recovery in 2021 as well. (Read more, more, and more)

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