Economy of Cambodia
| Economy of Cambodia | |
|---|---|
 Rice cropping plays an important role in the provincial economy |
|
| Rank | 108th |
| Currency | United States Dollar (USD) and Cambodian riel (CR) The CR is non-convertible. |
| Fiscal year | Calendar year |
| Statistics | |
| GDP | $27.95 billion (2008 est.) |
| GDP growth | 10.3% (2008 est.) |
| GDP per capita | $2,000 (2008 est.) |
| GDP by sector | agriculture (29%), industry (30%), services (41%) (2007) |
| Inflation (CPI) | 20.2% (2008 est.) |
| Population below poverty line |
35% (2004 est.) |
| Labour force | 8.6 million (2008 est.) |
| Labour
force by occupation |
agriculture: 75% (2004 est.) |
| Unemployment | 3.5% (2007 est.) |
| Main industries | tourism, garments, construction, rice milling, fishing, wood and wood products, rubber, cement, gem mining, textiles |
| Ease of Doing Business Rank | 147th[1] |
| External | |
| Exports | $4.616 billion f.o.b. (2008 est.) |
| Export goods | clothing, timber, rubber, rice, fish, tobacco, footwear |
| Main export partners | US 58.1%, Germany 7.3%, UK 5.2%, Canada 4.6%, Vietnam 4.5% (2007) |
| Imports | $6.424 billion f.o.b. (2008 est.) |
| Import goods | petroleum products, cigarettes, gold, construction materials, machinery, motor vehicles, pharmaceutical products |
| Main import partners | Thailand 23.1%, Vietnam 16.9%, China 15.0%, Hong Kong 10.4%, Singapore 7.5%, Taiwan 7.2%, South Korea 4.8% (2007) |
| Gross external debt | $4.317 billion (2009 est.) |
| Public finances | |
| Revenues | $1.264 billion (2008 est.) |
| Expenses | $1.478 billion (2008 est.) |
| Economic aid | $504 million pledged in grants and concessional loans for 2005 by international donors |
| All values, unless otherwise stated, are in US dollars | |
The economy of Cambodia has seen rapid progress in the last
decade. Per capita income, although rapidly
increasing, is low compared with most neighbouring countries. The main
domestic activity on which most rural households depend is agriculture
and its related sub-sectors. Manufacturing
output is varied but is not very extensive and is mostly conducted on a
small-scale and informal basis. The service sector is heavily
concentrated in trading activities and catering-related services.
Reuters has reported that oil and natural gas reserves have been found
off-shore.
During 1995, the government implemented firm stabilization policies
under difficult circumstances. Overall, macroeconomic performance was
good. Growth in 1995 was estimated at 7% because of improved
agricultural production (rice in particular). Strong growth in construction
and services continued. Inflation dropped from 26% in 1994 to only 6%
in 1995. Imports increased as a result of the availability of external
financing. Exports also increased, due to an increase in log exports.
With regard to the budget, both the current and overall deficits were
lower than originally targeted.
After four years of solid macroeconomic performance, Cambodia's
economy slowed dramatically in 1997-98 due to the regional economic
crisis, civil violence, and political infighting. Foreign investment and tourism
fell off. Also, in 1998 the main harvest was hit by drought. But in
1999, the first full year of peace in 30 years, progress was made on
economic reforms and growth resumed at 4%. The long-term development of
the economy after decades of war remains a daunting challenge. The
population lacks education and productive skills, particularly in the poverty-ridden
countryside, which suffers from an almost total lack of basic infrastructure. Recurring political
instability and corruption within government discourage foreign
investment and delay foreign aid. On the brighter side, the government
is addressing these issues with assistance from bilateral and
multilateral donors.
Foreign aid
Cambodia's emerging democracy has received strong international
support. Under the mandate carried out by the United
Nations Transitional Authority in Cambodia (UNTAC), $1.72 billion (1.72 G$) was spent in an effort
to bring basic security, stability and democratic rule to the country.
Regarding economic assistance, official donors had pledged $880 million
at the Ministerial Conference on the
Rehabilitation of Cambodia (MCRRC) in Tokyo in
June 1992, to which pledges of $119 million were added in September 1993
at the meeting of the International Committee on the
Reconstruction of Cambodia (ICORC) in Paris, and
$643 million at the March 1994 ICORC meeting in Tokyo. To date,
therefore, the total amount pledged for Cambodia's rehabilitation is
approximately 3.3 G$.
Recent developments
2007 GDP (or gross monetarised product GMP)grew an estimated 9.6%, in
line with the 2000/06 average of 9.5 percent. Garment exports rose
almost 8%, tourist arrivals jumped nearly 35%, and construction activity
doubled. With exports decelerating somewhat, the 2007 GDP growth was
driven by consumption and investment. Foreign direct investment (FDI)
inflows reached US$600 million (7 percent of GDP), slightly more than
the country received in official aid. Domestic investment, driven
largely by the private sector, accounted for 23.4 percent of GDP.
Approximately 2,860 new businesses registered for operation in 2007, a
71 percent increase over 2006.
Although risks have increased, economic prospects for 2008 remain
strong. The projected 7.5 percent growth rate for 2008 reflects a mix of
growth in services (mainly tourism) and construction combined with a
slowdown in garment exports. Export growth, especially to the US, began
to slow in late 2007 accompanied by stiffer competition from Vietnam and
emerging risks (slowdown in the US economy and lifting of safeguards on
China’s exports). Although exports of cash crops have grown fast in
recent years, developments in the garment industry have a major impact
on Cambodia’s export performance. On the other hand, Cambodia’s
exporters might benefit from the depreciation of the dollar. Another
risk is uncertainties in the construction sector.
Statistics
Industrial production growth rate: 8.4% (2008 est.)Electricity - production: 1.163 billion kWh (2006 est.)
Electricity - consumption: 1.178 billion kWh (2006 est.)
Electricity - exports: 0 kWh (208)
Electricity - imports: 110 million kWh (2006)
Household income or consumption by percentage share:
lowest 10%: 2.9%
highest 10%: 34.8% (2004)
Agriculture - products: rice, rubber, corn, vegetables, cashews, tapioca, silk
Exchange rates: riels (KHR) per US dollar - 4,044 (2008), 4,119 (2006), 4,092.5 (2005), 4,016.25 (2004), 3,973.33 (2003), 3,912.08 (2002)
