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.
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
15% (2007 est.)
Labor Force
7 million (2003 est.)
Electricity production
1.163 billion kWh (2006 est.)
Electricity Consumption
1.178 billion kWh (2006 est.)
Electricity Exports
0 kWh (2007 est.)
Electricity Imports
110 million kWh (2006 est.)
Unemployment Rate
2.5% (2000 est.)
Population Below Poverty Line
Household Income or Consumption by Percentage Share
Lowest 10%: 2.9%
Highest 10%: 34.8% (2004)
Distribution of Family Income Gini Index
41.7 (2004 est.)
Budget
Revenues: $1.015 billion
Expenditures: $1.168 billion (2007 est.)
Central Bank Discount Rate
5.25% (31 December 2007)
Commercial Bank Prime Lending Rate
Stock of Domestic Credit
$1.131 billion (31 December 2007)
Market Value of Publicly Traded Shares
$NA
Reserves of Foreign Exchange and Gold
$2.143 billion (31 December 2007 est.)
Debt External
$3.89 billion (31 December 2007 est.)
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
riels (KHR) per US dollar - 4,006 (2007), 4,103 (2006), 4,092.5 (2005), 4,016.25 (2004), 3,973.33 (2003)
