Cambodia Economy Profile 2009

Economy - overview

From 2004 to 2007, the economy grew about 10% per year, driven largely by an expansion in the garment sector, construction, agriculture, and tourism. Growth dropped to below 7% in 2008 as a result of the global economic slowdown. 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 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. 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 (purchasing power parity)

$27.94 billion (2008 est.)
$26.61 billion (2007 est.)
$24.15 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$11.18 billion (2008 est.)

GDP - real growth rate

5% (2008 est.)
10.2% (2007 est.)
10.8% (2006 est.)

GDP - per capita (PPP)

$2,000 (2008 est.)
$1,900 (2007 est.)
$1,800 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 29%
industry: 30%
services: 41% (2007 est.)

Population below poverty line

35% (2004)

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.)
2.5% (2000 est.)

Household income or consumption by percentage share

lowest 10%: 3%
highest 10%: 34.2% (2007)

Distribution of family income - Gini index

43 (2007 est.)
40 (2004 est.)

Investment (gross fixed)

22.4% of GDP (2008 est.)

Budget

revenues: $1.274 billion
expenditures: $1.592 billion (2008 est.)

Inflation rate (consumer prices)

19.7% (2008 est.)
5.9% (2007 est.)

Central bank discount rate

NA% (31 December 2008)
5.25% (31 December 2007)

Commercial bank prime lending rate

16.01% (31 December 2008)
16.18% (31 December 2007)

Stock of money

$591.7 million (31 December 2008)
$513.6 million (31 December 2007)

Stock of quasi money

$2.328 billion (31 December 2008)
$2.309 billion (31 December 2007)

Stock of domestic credit

$1.67 billion (31 December 2008)
$1.131 billion (31 December 2007)

Industries

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

Industrial production growth rate

8% (2008 est.)

Electricity - production

1.163 billion kWh (2006 est.)

Electricity - production by source

fossil fuel: 65%
hydro: 35%
nuclear: 0%
other: 0% (2001)

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 - imports

3,618 bbl/day (2005)

Oil - exports

0 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.)

Current Account Balance

$-1.002 billion (2008 est.)
$-506.3 million (2007 est.)

Agriculture - products

rice, rubber, corn, vegetables, cashews, tapioca, silk

Exports

$4.312 billion (2008 est.)
$4.089 billion (2007 est.)

Exports - commodities

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

Exports - partners

US 53.9%, Germany 7.7%, Canada 5.9%, UK 5.4%, Vietnam 4.9% (2008)

Imports

$6.37 billion (2008 est.)
$5.424 billion (2007 est.)

Imports - commodities

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

Imports - partners

Thailand 27.5%, China 16.2%, Vietnam 15.4%, Hong Kong 8.3%, Singapore 7.1%, South Korea 4.4% (2008)

Reserves of foreign exchange and gold

$2.641 billion (31 December 2008 est.)
$2.143 billion (31 December 2007 est.)

Debt - external

$4.266 billion (31 December 2008 est.)
$3.89 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)

Currency (code)

KHR

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

calendar year