Cambodia consumer credit growth remains strong despite slight slowdown

Cambodia has seen a rise in the number of financing institutions in recent years, with dozens setting up shop in the Kingdom to offer credit to consumers and commercial customers alike. As a result, total credit has increased steadily, with consumer credit growing by a staggering 45% since 2016

Although recent statistics show that consumer credit growth has slowed in recent months, the country’s leading credit bureau has hypothesised that consumers will continue to help grow the credit market as the overall financial status of the country continues to improve.  

According to the second 2018 quarterly report released by the Credit Bureau of Cambodia (CBC), Cambodia’s total outstanding consumer credit now accounts for nearly 30% of the total credit market in the country.  

“We anticipate [consumer credit] will continue to see good growth in the future,” said Oeur Sothearoath, CEO of the CBC. “It is viewed that there is still room for credit growth in the market based on the back of the country’s steady economic growth, which is also expected continue to grow.”

He added, however, that the backbone of Cambodia’s credit growth remains not in the hands of consumers, but in the continued rise and success of the country’s small- and medium-sized enterprises (SMEs).

“SMEs are deemed to be the bigger contributing factor to the overall credit growth in this phase of Cambodia’s stable gross domestic product (GDP) growth,” he said.

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