MEF: Cambodia Construction and Property Sectors to Grow by only 2.9% and 2.7% in 2021

• 27 January 2021
• Local News
• 5995 Views

The construction and property sectors are projected to grow by 2.9% and 2.7% in 2021 respectively, after contracting by 2.4% and 4.9% in 2020, according to the Ministry of Economy and Finance Latest’s Macroeconomic Report.

These drops for both sectors were due to the effect of the COVID-19 pandemic, which reduced foreign investment and demand. 2020 was the first time that the growth rate of these two sectors went negative during the past five years.

The report added that overall construction material imports growth dropped from 57.5% in 2019 to -18.2% in 2020, of which steel alone faced the most drastic drop from 57.% in 2019 to almost -40% in 2020.

For the property sector, the number of sales and purchase transactions saw only a very slight decrease from over 9000 to 8300, thanks to the strong financial status of local developers.

Nevertheless, both sectors are projected to increase by a small margin in 2021, due to the upward trend of affordable housing, and positive economic growth projection.

The report also projects that the overall economic growth for 2021 will be around 4%, due to the expected increase in foreign investment, an increase in demand, and effective government’s policy.

• Analysis
• Economy and Finance
• Policy and Strategy
• Investment and Funding