The Cambodian economy is expected to expand 4.5% this year as exports to the U.S. surged but construction approvals and cement imports plunged, the World Bank said in its latest economic update.
The bank’s report, issued Thursday, warned of rising oil prices due to the war in Ukraine and a resulting inflation rate of 7%.
But the exports of garments, footwear and travel goods grew to $3.1 billion in the first quarter, up from around $2.5 billion for the same quarter from 2019 through last year. Exports to the U.S. are especially on the rise, surging 44% year-on-year for $2.1 billion in the first three months.
Meanwhile, residential construction activity was hit hard, the report says, as only 5% of the expected supply of new condominium units were completed in the first quarter.
“New launches have slowed as the market tries to absorb the remaining stock. Average sale prices of high-end condominiums continued to slide, while the prices of affordable and midrange condominiums stabilized,” it says.
Approved construction permits fell 66% by value and 68% by area, while cement and steel imports contracted in volume by 71% and 16%, respectively.
— Michael Dickison
