MEF says service sector may slowdown in 2017

Modest growth in tourism and a slowdown in the logistics and real estate sectors could cumulatively have a knock-on effect that threatens the overall growth of the country’s service sector in 2017, a report from the Ministry of Economy and Finance (MEF) said yesterday. According to the report, tourism this year is predicted to continue growing a modest 3% compared to 2.2% last year, while growth in the logistics and transportation sector is expected to fall slightly from 7.6% in 2016 to about 7.5%. The biggest drop is predicted to be in the real estate sector, which is forecast to grow 8.2%, vs 9.5% in 2016 due to a slowdown in demand. Chan Sophal, director of the Center for Policy Studies, said the slowdown of the service sector could undermine the country’s target of 7% GDP growth. (Source: Khmer Times)