Cambodia's Economic Growth Driven by Real Estate and Construction Sectors

Cambodia's economy booming, driven by real estate, construction, and tourism sectors. Exports and GDP growth strong, attracting foreign investment. Resilience and potential for continued economic growth.

Rafia Tasleem
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Cambodia's Economic Growth Driven by Real Estate and Construction Sectors

Cambodia's Economic Growth Driven by Real Estate and Construction Sectors

Cambodia's economy is expanding significantly, driven primarily by the real estate and construction industries. Prime Minister Hun Manet has spoken optimism about the real estate industry's comeback and the government's resolve to encourage foreign investment in the nation.

In the first quarter of 2024, Cambodia's construction sector saw a 22.24% increase in imports of construction materials compared to the same period last year, reaching $349 million. The Ministry of Economy and Finance approved 3,207 construction projects valued at $5.4 billion in 2023, indicating the sector's robust growth.

The garment, footwear, and travel goods industry in Cambodia has also reported a significant 20% increase in exports, totaling $2.941 billion. Cambodia's trade with Australia and the European Union has increased, with exports of garments, footwear, and travel goods rising by 20% and 11.9% respectively in the first quarter.

Tourism is another key pillar of Cambodia's economic growth, with the government emphasizing its importance. During the recent four-day Khmer Traditional New Year, Cambodia welcomed nearly 22 million national and international visitors, marking a historic surge in tourism.

Why this matters: Cambodia's economic growth, driven by the real estate, construction, and tourism sectors, demonstrates the country's resilience and potential for attracting foreign investment. The success of these industries has far-reaching implications for job creation, infrastructure development, and overall economic stability in Cambodia.

The Asian Development Bank has forecasted strong growth in Cambodian exports and a 5.8% and 6% GDP growth rate for 2023 and 2024, respectively. With ongoing investments in infrastructure projects, such as the rehabilitation of National Road No. 48 in Sre Ambel, Koh Kong, and the expansion of Hong Kong-based Sunwah Group's investment portfolio in the country, Cambodia is poised for continued economic growth in the coming years.

Key Takeaways

  • Cambodia's economy sees strong growth, led by real estate and construction sectors.
  • Construction sector imports of materials up 22.24% in Q1 2024, 3,207 projects approved in 2023.
  • Garment, footwear, and travel goods exports rise 20% to $2.941 billion in Q1.
  • Tourism surges during Khmer New Year, with nearly 22 million visitors.
  • ADB forecasts 5.8% and 6% GDP growth for Cambodia in 2023 and 2024, respectively.