MEF: Construction Sector is Forecast to Recover Only 3% in 2022 

• 4 July 2022
• Local News
• 2124 Views

In the first quarter of 2022, there were​a total of 1,001 approved construction projects, down by 6.1% from the same period last, according to a recent report by the Ministry of Economy and Finance (MEF).

The decline occurred in almost all types of construction, including public construction, residential construction, villas, commercial construction, industrial construction, and tourism construction.

The report added the construction sector is expected to recover by only 3% in 2022.

The slow recovery was due to the negative impact of risks in the global economy and the slow return of foreign investors.

However, the construction sector remains a high potential sector, seen through the growth of credit provided to the sector and the strong government policy in mitigating risks within the sector.

Regarding the policy, the Ministry of Land Management, Urban Planning and Construction recently amended some contents of the construction permit application code to ease the requesting procedure.  (Read more)

According to the same report, the Cambodian economy is expected to grow by 5.6% in 2022, despite the challenges​ and uncertainty in the global economy.

The global economic downturn has been caused by a combination of the economic downturn in China, stricter US monetary policy, the prolonged Russia-Ukraine war, the emergence of new COVID-19 variants, the spike in oil price, and high inflation.

• Analysis