Economy 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. Although initial 2005 GDP growth estimates were less than 3%, better-than-expected garment sector performance led the IMF to forecast 6% growth in 2005. Faced with the possibility that its vibrant garment industry, with more than 200,000 jobs, could be in serious danger, the Cambodian government has committed itself to a policy of continued support for high labor standards in an attempt to maintain favor with buyers. The tourism industry continues to grow rapidly, with foreign visitors surpassing 1 million for the year by September 2005. In 2005, exploitable oil and natural gas deposits were found beneath Cambodia's territorial waters, representing a new revenue stream for the government once commercial extraction begins in the coming years. The long-term development of the economy remains a daunting challenge. The Cambodian government continues to work with bilateral and multilateral donors, including the World Bank and IMF, to address the country's many pressing needs. In December 2004, official donors pledged $504 million in aid for 2005 on the condition that the Cambodian government implement steps to reduce corruption. 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 20 years or younger. The population lacks education and productive skills, particularly in the poverty-ridden countryside, which suffers from an almost total lack of basic infrastructure. Fully 75% of the population remains engaged in subsistence farming.
Agriculture Products
rice, rubber, corn, vegetables, cashews, tapioca
Industries
tourism, garments, rice milling, fishing, wood and wood products, rubber, cement, gem mining, textiles
Industrial Production Growth Rate
22% (2002 est.)
Labor Force
7 million (2003 est.)
Electricity production
123.7 million kWh (2003)
Electricity Consumption
115 million kWh (2003)
Electricity Exports
0 kWh (2003)
Electricity Imports
0 kWh (2003)
Unemployment Rate
2.5% (2000 est.)
Population Below Poverty Line
40% (2004 est.)
Household Income or Consumption by Percentage Share
Lowest 10%: 2.9%
Highest 10%: 33.8% (1997)
Distribution of Family Income Gini Index
40 (2004 est.)
Budget
Revenues: $559.4 million
Expenditures: $772 million; including capital expenditures of $291 million (2005 est.)
Commercial Bank Prime Lending Rate
Market Value of Publicly Traded Shares
Reserves of Foreign Exchange and Gold
$1.145 billion (2005 est.)
Debt External
$800 million (2003 est.)
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
riels per US dollar - 4,092.5 (2005), 4,016.25 (2004), 3,973.33 (2003), 3,912.08 (2002), 3,916.33 (2001)
