Economy of Cambodia

From Wikipedia, the free encyclopedia

[edit] Overview

In spite of recent progress, the Cambodian economy continues to suffer from the legacy of decades of war and internal strife. Per capita income, although rapidly increasing, is low compared with most neighbouring countries. The main domestic activity on which most rural households depend is agriculture and its related sub-sectors. Manufacturing output is varied but is not very extensive and is mostly conducted on a small-scale and informal basis. The service sector is heavily concentrated in trading activities and catering-related services. Reuters has reported that oil and natural gas reserves have been found off-shore. Production of oil could potentially have a great effect on the future of the economy.

During 1995, the government implemented firm stabilization policies under difficult circumstances. Overall, macroeconomic performance was good. Growth in 1995 was estimated at 7% because of improved agricultural production (rice in particular). Strong growth in construction and services continued. Inflation dropped from 26% in 1994 to only 6% in 1995. Imports increased as a result of the availability of external financing. Exports also increased, due to an increase in log exports. With regard to the budget, both the current and overall deficits were lower than originally targeted.

After four years of solid macroeconomic performance, Cambodia's economy slowed dramatically in 1997-98 due to the regional economic crisis, civil violence, and political infighting. Foreign investment and tourism fell off. Also, in 1998 the main harvest was hit by drought. But in 1999, the first full year of peace in 30 years, progress was made on economic reforms and growth resumed at 4%. The long-term development of the economy after decades of war remains a daunting challenge. The population lacks education and productive skills, particularly in the poverty-ridden countryside, which suffers from an almost total lack of basic infrastructure. Recurring political instability and corruption within government discourage foreign investment and delay foreign aid. On the brighter side, the government is addressing these issues with assistance from bilateral and multilateral donors. So long as political stability lasts, the Cambodian economy is likely to grow at a respectable pace.

Cambodia's emerging democracy has received strong international support. Under the mandate carried out by the United Nations Transitional Authority in Cambodia (UNTAC), $1.72 billion (1.72 G$) was spent in an effort to bring basic security, stability and democratic rule to the country. Regarding economic assistance, official donors had pledged $880 million at the Ministerial Conference on the Rehabilitation of Cambodia (MCRRC) in Tokyo in June 1992, to which pledges of $119 million were added in September 1993 at the meeting of the International Committee on the Reconstruction of Cambodia (ICORC) in Paris, and $643 million at the March 1994 ICORC meeting in Tokyo. To date, therefore, the total amount pledged for Cambodia's rehabilitation is approximately 1.6 G$.

[edit] Statistics

GDP: purchasing power parity - $36.78 billion (2006 est.)

GDP - real growth rate: 5.8% (2006 est.)

GDP - per capita: purchasing power parity - $2,600 (2006 est.)

GDP - composition by sector:
agriculture: 35%
industry: 30%
services: 35% (2004)

Population below poverty line: 40% (2004 est.)

Household income or consumption by percentage share:
lowest 10%: 2.9%
highest 10%: 33.8% (1997)

Inflation rate (consumer prices): 5% (2006 est.)

Labour force: 7 million (2003 est.)

Labour force - by occupation: agriculture: 75% (2004 est.)

Unemployment rate: 2.5% (2000 est.)

Budget:
revenues: $731 million
expenditures: $931.8 million; including capital expenditures of $291 million (2006 est.)

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

Industrial production growth rate: 22% (2002 est.)

Electricity - production: 131 million kWh (2004)

Electricity - production by source:
fossil fuel: 59.52%
hydro: 40.48%
nuclear: 0%
other: 0% (1998)

Electricity - consumption: 121.8 million kWh (2004)

Electricity - exports: 0 kWh (1998)

Electricity - imports: 0 kWh (1998)

Agriculture - products: rice, rubber, corn, vegetables, cashews, tapioca

Exports: $3.331 billion f.o.b. (2006 est.)

Exports - commodities: clothing, timber, rubber, rice, fish, tobacco, footwear

Exports - partners: US 48.6%, Hong Kong 24.4%, Germany 5.6%, Canada 4.6% (2005)

Imports: $4.477 billion f.o.b. (2006 est.)

Imports - commodities: petroleum products, cigarettes, gold, construction materials, machinery, motor vehicles, pharmaceutical products

Imports - partners: Hong Kong 16.1%, China 13.6%, France 12.1%, Thailand 11.2%, Taiwan 10.2%, South Korea 7.5%, Vietnam 7.1%, Singapore 4.9%, Japan 4.1% (2005)

Debt - external: $3.664 billion (2006 est.)

Economic aid - recipient: $504 million pledged in grants and concessional loans for 2005 by international donors

Currency: 1 new riel (CR) = 100 sen

Exchange rates: riels per US dollar - 4,119 (2006), 4,092.5 (2005), 4,016.25 (2004), 3,973.33 (2003), 3,912.08 (2002)

Fiscal year: calendar year

[edit] See also

• Economy of Asia
• List of Cambodian companies
• ACTION GROUP LTD - Investing In Cambodia Investment consultant devoted to foreign investors and local companies with a focus on South East Asia

v • d • e

World Trade Organization (WTO)

Albania • Angola • Antigua and Barbuda • Argentina • Armenia • Australia • Bahrain, Kingdom of • Bangladesh • Barbados • Belize • Benin • Bolivia • Botswana • Brazil • Brunei Darussalam • Burkina Faso • Burundi • Cambodia • Cameroon • Canada • Central African Republic • Chad • Chile • China • Colombia • Congo • Costa Rica • Cote d'Ivoire • Croatia • Cuba • Democratic Republic of the Congo • Djibouti • Dominica • Dominican Republic • Ecuador • Egypt • El Salvador • European Communities¹ • Fiji • Former Yugoslav Republic of Macedonia (FYROM) • Gabon • The Gambia • Georgia • Ghana • Grenada • Guatemala • Guinea • Guinea Bissau • Guyana • Haiti • Honduras • Hong Kong, China • Iceland • India • Indonesia • Israel • Jamaica • Japan • Jordan • Kenya • Korea, Republic of • Kuwait • Kyrgyz Republic • Lesotho • Liechtenstein • Macao, China • Madagascar • Malawi • Malaysia • Maldives • Mali • Mauritania • Mauritius • Mexico • Moldova • Mongolia • Morocco • Mozambique • Myanmar • Namibia • Nepal • New Zealand • Nicaragua • Niger • Nigeria • Norway • Oman • Pakistan • Panama • Papua New Guinea • Paraguay • Peru • Philippines • Qatar • Rwanda • Saint Kitts and Nevis • Saint Lucia • Saint Vincent & the Grenadines • Saudi Arabia • Senegal • Sierra Leone • Singapore • Solomon Islands • South Africa • Sri Lanka • Suriname • Swaziland • Switzerland • Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu • Tanzania • Thailand • Togo • Trinidad and Tobago • Tunisia • Turkey • Uganda • United Arab Emirates • United States of America • Uruguay • Venezuela (Bolivarian Republic of) • Vietnam • Zambia • Zimbabwe

¹ All twenty-seven member states of the European Union are also members of the WTO in their own right:
Austria • Belgium • Bulgaria • Cyprus • Czech Republic • Denmark • Estonia • Finland • France • Germany • Greece • Hungary • Ireland • Italy • Latvia • Lithuania • Luxembourg • Malta • Netherlands (— For the Kingdom in Europe and for the Netherlands Antilles) • Poland • Portugal • Romania • Slovakia • Slovenia • Spain • Sweden • United Kingdom

[edit] External links

[edit] Overviews

Overview Article on Cambodia's Contemporary Political Economy: "The Neoliberal 'Order' in Cambodia: Political Violence, Democracy, and the Contestation of Public Space" by Simon Springer, PhD Candidate, Department of Geography, University of British Columbia, Vancouver, Canada.