Economy of Cambodia
Overview
In 1999, the first full year of peace in 30 years, the government made progress on economic reforms. The US and Cambodia signed a Bilateral Textile Agreement, which gave Cambodia a guaranteed quota of US textile imports and established a bonus for improving working conditions and enforcing Cambodian labor laws and international labor standards in the industry.
From 2001 to 2004, the economy grew at an average rate of 6.4%, driven largely by an expansion in the garment sector and tourism. With the January 2005 expiration of a WTO Agreement on Textiles and Clothing, Cambodia-based textile producers were forced to compete directly with lower-priced producing countries such as China and India. Better-than-expected garment sector performance led to more than 8% growth in 2007. Its vibrant garment industry employs more than 80,000 people and contributes more than 70% of Cambodia's exports. The Cambodian government has committed itself to a policy supporting high labor standards in an attempt to maintain buyer interest.
The tourism industry continues to grow rapidly, with foreign arrivals reaching 2 million in 2006. In 2007 the government signed a joint venture agreement with two companies to form a new national airline. 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 northeastern parts of the country, and the government has said opportunities exist for mining bauxite, gold, iron and gems. 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
Real Growth Rate
9%
Per Capita
USD 1,800
From Agriculture
34%
From Industry
27%
From Services
39%
Labour Force
Available for Work
75
Working in Agriculture
0%
Working in Industry
0%
Working in Services
0%
Unemployment Rate
3%
Population Below Poverty Line
35%
Inflation Rate
4%
Investment as Percent of GDP
20%
Budget
Revenues
USD 915 (m)
Expenditures
USD 1,101 (m)
Public Debt
US$ 0.00 (m)
Agricultural Products
Rice, rubber, corn, vegetables, cashews and tapioca.
Core Industries
Tourism, garments, rice milling, fishing, wood and wood products, rubber, cement, gem mining and textiles.
Exports
Value
USD 4,366 (m)
Commodities
Clothing, timber, rubber, rice, fish, tobacco and footwear.
Partners
US 53.3%, Hong Kong 15.2%, Germany 6.6%, UK 4.3% (2006)
Imports
Value
USD 5,617 (m)
Commodities
Partners
Hong Kong 18.1%, China 17.5%, Thailand 13.9%, Taiwan 12.7%, Vietnam 9%, Singapore 5.3%, South Korea 4.9%, Japan 4.3% (2006)
External Debt
USD 3,980 (m)
Fiscal Year
Calendar year
