PHNOM PENH: Despite the numerous challenges in the global landscape, including those faced by the real estate sector, it is crucial to acknowledge that the current real estate issues in Cambodia do not possess the power to plunge the national economy into a state of crisis.
Oknha Lim Heng, Vice President of the Cambodia Chamber of Commerce (CCC), emphasized that while the real estate sector poses challenges, it is just one facet of the economy and should not be considered a representation of the entire economic situation. Accusing the national economy of being in crisis, either before or after the election, is unwarranted.
Oknha explained the setbacks in the real estate sector will not adversely impact other growing sectors of the economy, such as the emerging services sector recovering from COVID-19, industrial, exports, and agriculture.
Cautionary comments have caused some wealthy individuals to be hesitant in purchasing land or houses, choosing to wait until after the election. Consequently, this further complicates the situation in the real estate market. Difficulties in the real estate sector can lead to payment issues with banks and have an indirect effect on other industries, Oknha added.
Hence, as representatives of the CCC, we confidently assert that the national economy has not deteriorated to a concerning state. In fact, it remains promising for the upcoming years of 2023 and 2024, particularly after the election. This optimism is further supported by our active engagement in various free economic agreements, both regionally and internationally, including initiatives like GBA and GSP.
According to recent statements by Prime Minister Hun Sen, the Cambodian economy is expected to experience a growth rate of 6.6 percent in 2024. Despite the garment and footwear industries growing slightly slower than anticipated, it is highly likely that the country will still achieve a growth rate of 5.6 percent this year. This can be attributed to the compensatory growth seen in the non-garment manufacturing sector.