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The Economy of Cambodia

Cambodian Economy

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Economy - overview: From 2004 to 2008, the economy grew about 10% per year, driven largely by an expansion in the garment sector, construction, agriculture, and tourism. With the January 2005 expiration of a WTO Agreement on Textiles and Clothing, Cambodian textile producers were forced to compete directly with lower-priced countries such as China, India, Vietnam, and Bangladesh. The garment industry currently employs more than 320,000 people and contributes more than 85% of Cambodia's exports. In 2005, exploitable oil and natural gas deposits were found beneath Cambodia's territorial waters, representing a new revenue stream for the government if commercial extraction begins. Mining also is attracting significant investor interest, particularly in the northern parts of the country, and the government has said opportunities exist for mining bauxite, gold, iron and gems. In 2006, a US-Cambodia bilateral Trade and Investment Framework Agreement (TIFA) was signed and several rounds of discussions have been held since 2007. The tourism industry has continued to grow rapidly, with foreign arrivals exceeding 2 million per year in 2007-08, however, economic troubles abroad will dampen growth in 2009. Rubber exports declined more than 15% in 2008 due to falling world market prices. The global financial crisis is weakening demand for Cambodian exports, and construction is declining due to a shortage of credit. The long-term development of the economy remains a daunting challenge. The Cambodian government is working with bilateral and multilateral donors, including the World Bank and IMF, to address the country's many pressing needs. The major economic challenge for Cambodia over the next decade will be fashioning an economic environment in which the private sector can create enough jobs to handle Cambodia's demographic imbalance. More than 50% of the population is less than 21 years old. The population lacks education and productive skills, particularly in the poverty-ridden countryside, which suffers from an almost total lack of basic infrastructure.

GDP:

GDP - real growth rate: 6.8% (2008 est.) 10.2% (2007 est.) 10.8% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 29% industry: 30% services: 41% (2007 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 2.9% highest 10%: 34.8% (2004)

Distribution of family income - Gini index: 43 (2007 est.)

Inflation rate (consumer prices):

Labor force: 8.6 million (2008 est.)

Labor force - by occupation: agriculture: 75% industry: NA% services: NA% (2004 est.)

Unemployment rate: 3.5% (2007 est.)

Budget: revenues: $1.264 billion expenditures: $1.478 billion (2008 est.)

Industries: tourism, garments, construction, rice milling, fishing, wood and wood products, rubber, cement, gem mining, textiles

Industrial production growth rate: 8.4% (2008 est.)

Electricity - production: 1.163 billion kWh (2006 est.)

Electricity - production by source:

Electricity - consumption: 1.178 billion kWh (2006 est.)

Electricity - exports: 0 kWh (2007 est.)

Electricity - imports: 110 million kWh (2006 est.)

Oil - production: 0 bbl/day (2007 est.)

Oil - consumption: 3,736 bbl/day (2006 est.)

Oil - exports: 0 bbl/day (2005)

Oil - imports: 3,618 bbl/day (2005)

Oil - proved reserves: 0 bbl (1 January 2006 est.)

Natural gas - production: 0 cu m (2007 est.)

Natural gas - consumption: 0 cu m (2007 est.)

Natural gas - exports: 0 cu m (2007 est.)

Natural gas - imports: 0 cu m (2007 est.)

Natural gas - proved reserves: 0 cu m (1 January 2006 est.)

Agriculture - products: rice, rubber, corn, vegetables, cashews, tapioca, silk

Exports: $4.616 billion f.o.b. (2008 est.)

Exports - commodities: clothing, timber, rubber, rice, fish, tobacco, footwear

Exports - 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.)

Imports - commodities: petroleum products, cigarettes, gold, construction materials, machinery, motor vehicles, pharmaceutical products

Imports - partners: Thailand 23.1%, Vietnam 16.9%, China 15%, Hong Kong 10.4%, Singapore 7.5%, Taiwan 7.2%, South Korea 4.8% (2007)

Debt - external: $4.317 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: riels (KHR) per US dollar - 4,070.94 (2008 est.), 4,006 (2007), 4,103 (2006), 4,092.5 (2005), 4,016.25 (2004)

Fiscal year: