WB: High Credit in Construction & Real Estate Still Risk for Cambodia’s Financial Stability

• 6 April 2022
• Local News
• 1511 Views

High credit growth in the construction and real estate sectors remains a key risk to Cambodia’s financial stability despite the 2022 economic growth rate projection of 3.8-4.5%, according to a World Bank report issued on 5 April.

As of 2021, credit to construction and real estate activities were accumulatively at US$6.93 billion, or 18% of US$38.6-billion total consumer credit.

The National Bank of Cambodia’s latest report has shown that credit to construction was US$3.58 billion, or 9.3% of the total credit, while real estate activities share 8.7% or US$3.35 billion.

High credit in the two sectors is only one among other risks to Cambodia’s economy according to the Word Bank. Those include the uncertainty of COVID-19, rising energy and food prices, declining global demand, the Ukraine war, China’s economic transformation, and restriction of US financial markets.

• Analysis
• Economy and Finance