PHNOM PENH: Cambodia’s construction sector is expected to recover by 3% in 2022 as lending to the sector expands. In the third quarter of 2022, construction loans totaled more than $4,600 million.

In the third quarter of 2022, banks and microfinance institutions loaned more than $4.6 billion to the construction sector. Bank loans accounted for more than $ 4.2 billion, while microfinance institutions accounted for more than $ 400 million.

According to the report, “credit institutions provided by commercial banks amounted to 17,543.86 billion riels (about 4,200 million US dollars) in the third quarter of 2022, an increase of 19.1% compared to the same period last year.” Similarly, there will be 14,733.44 billion riels in 2021. (about more than 3,500 million dollars).

Microfinance institution loans to the construction sector totaled 1,706.23 billion riels (about $400 million), representing a 35.1% increase over the same period in 2021, which totaled 1262.72 billion riels (about $300 million).

Construction project approvals totaled 1,175 in the third quarter of 2022, an increase of 147 projects, or 14.3 percent, over the same period in 2021. Among them are an increase in residential construction projects, villas, industrial construction, public construction (private sector budget), and other constructions other than commercial and tourism construction.