Economy of Cambodia

Economy of Cambodia
Phnom Penh, the capital and largest city of Cambodia
CurrencyRiel (KHR, ៛)
Calendar year
Trade organisations
WTO, ASEAN, AFTA, RCEP, SCO, G77
Country group
Statistics
PopulationIncrease 17,181,065 (2024)[3]
GDP
  • Increase $45.15 billion (nominal, 2024 est.)[4]
  • Increase $142.39 billion (PPP, 2024 est.)[4]
GDP rank
GDP growth
  • 3.1% (2021) 5.1% (2022)
  • 5.0% (2023) 6.0% (2024)[5]
GDP per capita
  • Increase $2,636 (nominal, 2024 est.)[4]
  • Increase $8,290 (PPP, 2024 est.)[4]
GDP per capita rank
GDP by sector
2% (2023 est.)[4]
Population below poverty line
23.6 medium (2024)[9]
Labour force
  • Increase 9,230,114 (2019)[12]
  • Increase 81.1% employment rate (2016)[13]
Labour force by occupation
Unemployment
  • Negative increase 0.3% (2017 est.)[6]
  • high underemployment, according to official statistics
Main industries
tourism, garments, construction, rice milling, fishing, wood and wood products, rubber, cement, gem mining, textiles
External
ExportsIncrease $20.126 billion (2021 est.)[6]
Export goods
clothing, precious metal scraps, trunks/cases, gold, leather footwear
Main export partners
ImportsIncrease $32.83 billion (2021 est.)[6]
Import goods
refined petroleum, clothing, gold, cars, flavored water
Main import partners
FDI stock
  • $53.5 billion (2023 est.)[6]
  • Abroad: N/A
Decrease −$1.563 billion (2024 est.)[6]
Negative increase $22.6 billion (31 Dec 2023 est.)[6]
Public finances
Negative increase 32.5% of GDP (2024 est.)[6]
−3.5% (of GDP) (2024 est.)[6]
Revenues$6.2 billion (2023 est.)[6]
Expenses$7.4 billion (2023 est.)[6]
Economic aid$934 million pledged in grants and concessional loans for 2011 by international donors
Increase $21.285 billion (25 April 2024 est.)[6]
All values, unless otherwise stated, are in US dollars.
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The economy of Cambodia (Khmer: សេដ្ឋកិច្ចនៃកម្ពុជា [setʰakəc nəj kampuciə]) currently follows an open market system (market economy) and has seen rapid economic progress in the last decade.[17] Cambodia had a gross domestic product (GDP) of $28.54 billion in 2022.[18] Per capita income, although rapidly increasing, is low compared with most neighboring countries. Cambodia's two largest industries are textiles and tourism, while agricultural activities remain the main source of income for many Cambodians living in rural areas.[19] The service sector is heavily concentrated on trading activities and catering-related services. Recently, Cambodia has reported that oil and natural gas reserves have been found off-shore.[20]

In 1995, with a GDP of $2.92 billion[21] the Cambodian government transformed the country's economic system from a planned economy to its present market-driven system.[22] Following those changes, growth was estimated at a value of 7% while inflation dropped from 26% in 1994 to only 6% in 1995. Imports increased due to the influx of foreign aid, and exports, particularly from the country's garment industry, also increased. Although there was a constant economic growth, this growth translated to only about 0.71% for the ASEAN economy in 2016, compared with her neighbor Indonesia, which contributed 37.62%.[23]

After four years of improving economic performance, Cambodia's economy slowed in 1997–1998 due to the regional economic crisis, civil unrest, and political infighting. Foreign investments declined during this period. Also, in 1998 the main harvest was hit by drought. But in 1999, the first full year of relative peace in 30 years, progress was made on economic reforms and growth resumed at 4%.

Currently, Cambodia's foreign policy focuses on establishing friendly borders with its neighbors (such as Thailand and Vietnam), as well as integrating itself into regional (ASEAN) and global (WTO) trading systems. Some of the obstacles faced by this emerging economy are the need for a better education system and the lack of a skilled workforce; particularly in the poverty-ridden countryside, which struggles with inadequate basic infrastructure. Nonetheless, Cambodia continues to attract investors because of its low wages, plentiful labor, proximity to Asian raw materials, and favorable tax treatment.[24]

  1. ^ "World Economic Outlook Database, April 2024". IMF.org. International Monetary Fund. Retrieved 26 April 2024.
  2. ^ "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Retrieved 29 September 2019.
  3. ^ "Population, total - Cambodia". Retrieved April 26, 2024.
  4. ^ a b c d e "World Economic Outlook Database, October 2023". IMF.org. International Monetary Fund. Retrieved October 24, 2023.
  5. ^ Global Economic Prospects, April 2024.
  6. ^ a b c d e f g h i j k l m "The World Factbook". statista. Aaron O'Neill. Retrieved 8 December 2023.
  7. ^ "Poverty headcount ratio at national poverty lines (% of population)". databank.worldbank.org. World Bank. Retrieved 11 April 2022.
  8. ^ "Poverty headcount ratio at $1.90 a day (2023 PPP) (% of population) - Cambodia". data.worldbank.org. World Bank. Retrieved 1 February 2020.
  9. ^ "Income Gini coefficient". hdr.undp.org. World Bank. February 2024. Retrieved April 27, 2024.
  10. ^ "Human Development Index (HDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme. Retrieved 9 September 2023.
  11. ^ "Inequality-adjusted HDI (IHDI)". hdr.undp.org. UNDP. Retrieved 22 September 2022.
  12. ^ "Labor force, total - Cambodia". data.worldbank.org. World Bank. Retrieved 18 November 2019.
  13. ^ "Employment to population ratio, 15+, total (%) (national estimate) - Cambodia". data.worldbank.org. World Bank. Retrieved 18 November 2019.
  14. ^ "Export Partners of Cambodia". The Observatory of Economic Complexity. Retrieved 8 March 2024.
  15. ^ "Import Partners of Cambodia". The Observatory of Economic Complexity. Retrieved 8 March 2024.
  16. ^ "Sovereigns rating list". Standard & Poor's. Retrieved 26 May 2011.
  17. ^ Development and Its Discontent April 12, 2013 New York Times
  18. ^ "GDP (current US$) - Cambodia". data.worldbank.org. World Bank. Retrieved 4 December 2019.
  19. ^ Weggel, Oskar (January 2006). "Cambodia in 2005: Year of Reassurance". Asian Survey. 46 (1): 158. doi:10.1525/as.2006.46.1.155.
  20. ^ Gronholt-Pedersen, Jacob (26 September 2012). "Cambodia Aims for Offshore Production Next Year". The Wall Street Journal. Retrieved 11 February 2013.
  21. ^ "Background Notes: Cambodia, January 1996". Bureau of East Asian and Pacific Affairs U.S. Department of State - Economy. Archived from the original on October 14, 2022. Retrieved October 12, 2016.
  22. ^ Chheang, Vannarith (September 2008). "The Political Economy of Tourism in Cambodia". Asia Pacific Journal of Tourism Research. 13 (3): 281–297. doi:10.1080/10941660802280414. S2CID 153876563.
  23. ^ Yonn, Royel. "The effects of Cambodia economy on ASEAN economic moving forward." Journal of Management, Economics, and Industrial Organization 1.2 (2017): 1-16.
  24. ^ Lee, Joosung J. (May–June 2011). "An Outlook for Cambodia's Garment Industry in the Post-Safeguard Policy Era". Asian Survey. 51 (3): 559–580. doi:10.1525/as.2011.51.3.559. JSTOR 10.1525/as.2011.51.3.559.