Economy

Economy – overview

From 2004 to 2008, the economy grew about 10% per year, driven largely by an expansion in the garment sector, construction, agriculture, and tourism. GDP contracted slightly in 2009 as a result of the global economic slowdown but climbed more than 6% in 2010 and 6.7 in 2011, driven by tourism and renewed exports. 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 300,000 people – about 5% of the work force – and contributes more than 70% of Cambodia’s exports. In 2005, exploitable oil deposits were found beneath Cambodia’s territorial waters, representing a potential revenue stream for the government when 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. Rubber exports increased about 50% in 2011 due to continued demand for raw rubber, particularly from China, Malaysia, and Vietnam. The tourism industry has continued to grow rapidly with foreign arrivals exceeding 2 million per year since 2007; economic troubles abroad dampened growth in 2009 but arrivals rebounded to over 2 million in 2010-11. The global financial crisis is weakening demand for many 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 25 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)

$32.95 billion (2011 est.)
$30.91 billion (2010 est.)
$29.17 billion (2009 est.)
note: data are in 2011 US dollars

GDP (official exchange rate)

$13.2 billion (2011 est.)

GDP – real growth rate

6.7% (2011 est.)
6% (2010 est.)
-2% (2009 est.)

GDP – per capita (PPP)

$2,300 (2011 est.)
$2,200 (2010 est.)
$2,100 (2009 est.)
note: data are in 2011 US dollars

GDP – composition by sector

agriculture: 30%
industry: 30%
services: 40% (2011 est.)

Population below poverty line

31% (2007 est.)

Labor force

8.8 million (2010 est.)

Labor force – by occupation

agriculture: 57.6%
industry: 15.9%
services: 26.5% (2009 est.)

Unemployment rate

3.5% (2007 est.)
2.5% (2000 est.)

Household income or consumption by percentage share

lowest 10%: 3%
highest 10%: 37.3% (2007)

Distribution of family income – Gini index

44.4 (2007 est.)
40 (2004 est.)

Investment (gross fixed)

24.3% of GDP (2011 est.)

Budget

revenues: $2.018 billion
expenditures: $2.669 billion (2011 est.)

Taxes and other revenues

12.8% of GDP (2011 est.)

Budget surplus (+) or deficit (-)

-6.4% of GDP (2011 est.)

Inflation rate (consumer prices)

6% (2011 est.)
4% (2010 est.)

Central bank discount rate

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

Commercial bank prime lending rate

15.6% (31 December 2011 est.)
15.633% (31 December 2010 est.)

Stock of money

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

Stock of narrow money

$886.9 million (31 December 2011 est.)
$789.9 million (31 December 2010 est.)

Stock of quasi money

$3.197 billion (31 December 2009)
$2.328 billion (31 December 2008)

Stock of broad money

$5.6 billion (31 August 2011 est.)
$4.832 billion (31 December 2010 est.)

Stock of domestic credit

$3.4 billion (31 August 2011 est.)
$2.64 billion (31 December 2010 est.)

Market value of publicly traded shares

$NA

Agriculture – products

rice, rubber, corn, vegetables, cashews, cassava (manioc), silk

Industries

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

Industrial production growth rate

5.7% (2010 est.)

Electricity – production

1.377 billion kWh (2008 est.)

Electricity – production by source

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

Electricity – consumption

1.559 billion kWh (2008 est.)

Electricity – exports

0 kWh (2009 est.)

Electricity – imports

374 million kWh (2008 est.)

Oil – production

0 bbl/day (2010 est.)

Oil – consumption

32,000 bbl/day (2010 est.)

Oil – exports

0 bbl/day (2009 est.)

Oil – imports

33,200 bbl/day (2009 est.)

Oil – proved reserves

0 bbl (1 January 2011 est.)

Natural gas – production

0 cu m (2009 est.)

Natural gas – consumption

0 cu m (2009 est.)

Natural gas – exports

0 cu m (2009 est.)

Natural gas – imports

0 cu m (2009 est.)

Natural gas – proved reserves

0 cu m (1 January 2011 est.)

Current Account Balance

-$1.143 billion (2011 est.)
-$991.8 million (2010 est.)

Exports

$5.35 billion (2011 est.)
$5.068 billion (2010 est.)

Exports – commodities

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

Exports – partners

US 47.3%, Canada 7.5%, UK 6.8%, Germany 6.4%, Thailand 4.3%, Japan 4.1% (2009)

Imports

$6.963 billion (2011 est.)
$6.783 billion (2010 est.)

Imports – commodities

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

Imports – partners

Thailand 26.5%, Singapore 25.1%, China 15.3%, Hong Kong 6.6%, Vietnam 6.5% (2009)

Reserves of foreign exchange and gold

$4.113 billion (31 December 2011 est.)
$3.802 billion (31 December 2010 est.)

Debt – external

$4.81 billion (31 December 2011 est.)
$4.431 billion (31 December 2010 est.)

Exchange rates

riels (KHR) per US dollar –
4,085.9 (2011 est.)
4,185 (2010 est.)
4,139 (2009)
4,070.94 (2008)
4,006 (2007)

Fiscal year

calendar year