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.
Agriculture Products
rice, rubber, corn, vegetables, cashews, tapioca, silk
Industries
tourism, garments, construction, rice milling, fishing, wood and wood products, rubber, cement, gem mining, textiles
Industrial Production Growth Rate
8% (2008 est.)country comparison to the world: 20
Labor Force
8.6 million (2008 est.)country comparison to the world: 54
Electricity production
1.273 billion kWh (2007 est.)country comparison to the world: 141
Electricity Consumption
1.272 billion kWh (2007 est.)country comparison to the world: 142
Electricity Exports
0 kWh (2008 est.)
Electricity Imports
167 million kWh (2007 est.)
Unemployment Rate
3.5% (2007 est.)country comparison to the world: 39 2.5% (2000 est.)
Population Below Poverty Line
35% (2004)
Household Income or Consumption by Percentage Share
Lowest 10%: 3%
Highest 10%: 34.2% (2007)
Distribution of Family Income Gini Index
43 (2007 est.)country comparison to the world: 52 40 (2004 est.)
Budget
Revenues: $1.274 billion
Expenditures: $1.592 billion (2008 est.)
Central Bank Discount Rate
NA% (31 December 2008)country comparison to the world: 89 5.25% (31 December 2007)
Commercial Bank Prime Lending Rate
Stock of Domestic Credit
$1.67 billion (31 December 2008)country comparison to the world: 96 $1.131 billion (31 December 2007)
Market Value of Publicly Traded Shares
$NA
Reserves of Foreign Exchange and Gold
$2.641 billion (31 December 2008 est.)country comparison to the world: 100 $2.143 billion (31 December 2007 est.)
Debt External
$4.127 billion (31 December 2008 est.)country comparison to the world: 109 $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 - 4,070.94 (2008 est.), 4,006 (2007), 4,103 (2006), 4,092.5 (2005), 4,016.25 (2004)
