Cambodia Economy Profile 2008

Economy - overview

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. 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. 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 9% growth in 2007. Its vibrant garment industry employs more than 350,000 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. 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. In 2006, a US-Cambodia bilateral Trade and Investment Framework Agreement (TIFA) was signed and the first round of discussions took place in early 2007. The tourism industry continues to grow rapidly, with foreign arrivals reaching 2 million in 2007. In 2007 the government signed a joint venture agreement with two companies to form a new national airline. 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 (purchasing power parity)

$25.79 billion (2007 est.)

GDP (official exchange rate)

$8.3 billion (2007 est.)

GDP - real growth rate

9.1% (2007 est.)

GDP - per capita (PPP)

$1,800 (2007 est.)

GDP - composition by sector

agriculture: 31%
industry: 26%
services: 43% (2007 est.)

Population below poverty line

35% (2004)

Household income or consumption by percentage share

lowest 10%: 2.9%
highest 10%: 34.8% (2004)

Inflation rate (consumer prices)

4.4% (2007 est.)

Investment (gross fixed)

20.3% of GDP (2007 est.)

Labor force

7 million (2003 est.)

Labor force - by occupation

agriculture: 75%
industry: NA%
services: NA%

Unemployment rate

2.5% (2000 est.)

Distribution of family income - Gini index

41.7 (2004 est.)

Budget

revenues: $915.5 million
expenditures: $1.101 billion (2007 est.)

Industries

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

Industrial production growth rate

12% (2007 est.)

Electricity - production

134 million kWh (2005)

Electricity - consumption

206.6 million kWh (2005)

Electricity - exports

0 kWh (2005)

Electricity - imports

82 million kWh (2005)

Oil - production

0 bbl/day (2005)

Oil - consumption

3,700 bbl/day (2005 est.)

Oil - imports

3,585 bbl/day (2004)

Oil - exports

0 bbl/day (2004)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2005 est.)

Natural gas - consumption

0 cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

0 cu m (2005)

Natural gas - proved reserves

NA

Current Account Balance

-$410 million (2007 est.)

Agriculture - products

rice, rubber, corn, vegetables, cashews, tapioca

Exports

$4.1 billion f.o.b. (2007 est.)

Exports - commodities

clothing, timber, rubber, rice, fish, tobacco, footwear

Exports - partners

US 53.3%, Hong Kong 15.2%, Germany 6.6%, UK 4.3% (2006)

Imports

$5.3 billion f.o.b. (2007 est.)

Imports - commodities

petroleum products, cigarettes, gold, construction materials, machinery, motor vehicles, pharmaceutical products

Imports - 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)

Reserves of foreign exchange and gold

$1.662 billion (31 December 2007 est.)

Debt - external

$3.98 billion (31 December 2007 est.)

Market value of publicly traded shares

$NA

Economic aid - recipient

$698.2 million pledged in grants and concession loans for 2007 by international donors (2007)

Currency (code)

riel (KHR)

Exchange rates

riels per US dollar - 4,006 (2007), 4,103 (2006), 4,092.5 (2005), 4,016.25 (2004), 3,973.33 (2003)

Fiscal year

calendar year