Slowdown in Construction and Real Estate Remain ADB’s Concern, Despite 5.4% Growth Forecast in 2021

• 11 December 2020
• Local News
• 2102 Views

The Asian Development Bank (ADB)’s December forecast has shown that Cambodia’s economy will contract by 4% year-on-year during 2020, and the growth will rebound by 5.4% in 2021. However, the slowdown in the construction and real-estate sector is still a concern among other risks.

This forecast remains unchanged compared to the September forecast by the same institution. ADB also stated that Cambodia is also diversifying its export capacity, which is key to future growth because Cambodia’s growth has been built on openness to trade.

ADB Cambodia Country Economist David Freedman also pointed out that despite the optimistic projection in 2021, there are still some downside risks

Quoted in the Khmer Times, he said those risks include a slow recovery of tourism and consumer demand, construction and real-estate slowdown, rising poverty from the pandemic, household debts, skills shortage, and any risks caused by climate change and water resources.

However, the GDP forecast for Southeast Asia overall has been revised down from a 3.8% contraction in the Update to 4.4% in 2020 and from 5.5% growth to 5.2% in 2021.

• Economy and Finance
• Policy and Strategy