PHNOM PENH, Oct. 10 (Xinhua) -- Cambodia's real estate boom maybe coming
to an end, with the global financial meltdown threatening foreign
investment, national media reported Friday. "Our property markets are
closely connected with the stock markets in South Korea and other Asian
countries. If these markets fall, we are affected," Kang Chandararot,
the head of the economists at the Cambodia Institute of Development
Study, was quoted by the Phnom Penh Post as saying.
"We will see a recession in the short term, perhaps in six to 12
months," he said.
The South Korean government issued a statement this week urging banks
to sell foreign assets to increase liquidity, the Post said.
South Korea is Cambodia's biggest investor and a fall in South Korea
would be especially harmful to local growth, it said.
"South Korean and other Asian markets are very closely connected to
the U.S., and these countries are our biggest investors," said Kang
Chandararot.
Cambodia's real estate sector has enjoyed unprecedented growth since
2007, but began to slide in mid-2008, industry sources say.
No figures on the depth of the declines were available, but industry
experts said the crisis' impact could be felt soon.
Meanwhile, Cheam Yeap, a lawmaker with the Cambodian People's Party
and chairman of the National Banking and Finance Committee, said the
U.S. crisis might affect the Kingdom's real estate market, but not the
economy as a whole.
He said Cambodia's economy is sufficiently diversified in tourism,
agriculture and garment manufacturing to withstand the global crisis.
Editor: Jiang Yuxia
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