Economical overview
Cambodia has always been a prominent
agricultural country. A majority of the inhabitants are
still dependent on mainly rice cultivation for their
living. But since democratization in 1993, industry,
mainly textile production, and tourism has grown
significantly in importance and now accounts for a
larger part of the economy than agriculture does.
Clothing exports alone generate around 70 percent of
export revenue.
Cambodia has in a short time been transformed from a
war-torn, seemingly hopeless case to one of Asia's
success stories. The economy grew by almost 10 percent a
year in 1998–2007. The global crisis of 2008-2009 hit
hard on both tourism and clothing exports. Growth
stopped almost completely but soon gained momentum again
and was around 7 percent in the 2010s.
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Countryaah.com:
Major imports by Cambodia, covering a full list of top products imported by the country and trade value for each product category.
Despite good growth, Cambodia is still a poor
country. Although growth has benefited many poor people,
the economic gaps in the population are deep and
growing. Particularly large is the difference between
city and countryside; the majority of the poor live in
the countryside.
Economic growth has largely been driven from abroad.
Tourism has increased as security is strengthened
through increased political stability, and the textile
industry has grown at a rapid pace through foreign
investment. This has been done by attracting investors
with cheap labor, few regulations and almost unlimited
opportunities to bring profits out of the country. In
2016 and 2017, direct investment from China increased
sharply, primarily in infrastructure. Other important
investors are Hong Kong, Vietnam and Japan.
Around mid-2010, growth in the textile industry
slowed somewhat, mainly due to increased competition
from other low-wage countries. Cambodia fought with high
costs for electricity and transport. At the same time,
exports of machinery and car parts increased.
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Abbreviationfinder.org: Check this abbreviation website to find three letter ISO codes for all countries in the world, including KHM which represents the country of Cambodia.
Large sums are donated to the Treasury through the
assistance of a wide range of donors, of which the Asian
Development Bank, Japan, the United States and China are
among the largest . In total, donors
account for one third of the country's budget, a
substantial reduction compared to 2010 when 60 percent
of the budget was aid. The donors are concerned by the
aggressive land policy and the lack of respect for human
rights. In 2011, the World Bank announced that no new
loans would be granted until the Cambodian government
reached a settlement with residents who risked being
driven away from their homes in an area in Phnom Penh
(see Calendar). After a number of residents received
permission from the government to stay in the area, the
World Bank granted new loans to Cambodia in May 2016.
The challenges for Cambodia are still great. The
country has a shortage of trained labor, electricity
costs are high and public administration is inefficient
and corrupt. Agriculture has stagnated due to a lack of
investment in irrigation systems and other
infrastructure and poor utilization of land (see
Agriculture and Fisheries). The banking system is
deficient. Many rural residents buy livestock for their
savings capital rather than deposit money at the bank.
In February 2020, the EU withdrew some of the trade
benefits enjoyed by Cambodia on the Union market through
the Everything but arms (EBA) trade agreement. The
restriction involves fees of around one-fifth of the
country's annual exports to the EU and will entail
increased costs for Cambodia of $ 1.5 billion. The
decision was made as a consequence of growing democratic
shortcomings in Cambodia, such as political repression
of opposition and defective labor law (see Democracy and
Rights).
FACTS - FINANCE
GDP per person
US $ 1,512 (2018)
Total GDP
US $ 24,572 million (2018)
GDP growth
7.5 percent (2018)
Agriculture's share of GDP
22.0 percent (2018)
Manufacturing industry's share of GDP
16.3 percent (2018)
The service sector's share of GDP
39.5 percent (2018)
Inflation
2.2 percent (2019)
Government debt's share of GDP
28.6 percent (2018)
External debt
US $ 11,898 million (2017)
Currency
fittings; even US dollars are often used
Merchandise exports
US $ 12 963 million (2018)
Imports
US $ 18 806 million (2018)
Current account
- US $ 2,773 million (2018)
Commodity trade's share of GDP
136 percent (2018)
Main export goods
clothing and other textile products, shoes
Largest trading partner
China, USA
2010
September
Another prison sentence for Rainsy
Opposition leader Sam Rainsy is sentenced to second imprisonment for the
second time, this time for ten years. In January 2010, he was sentenced to two
years in prison (see January 2010). Rainsy, who lives in exile
in Paris, is convicted of making changes to an official map of the border with
Vietnam, in order to prove that the government has given up territory.
August
Relations with Thailand are restored
The diplomatic relations between Cambodia and Thailand are restored when
Thaksin Shinawatra resigns as economic adviser (see November 2009).
July
Long prison sentence for Duch
The Red Khmer Tribunal sentenced the former prison chief Duch to 35 years in
prison for thousands of murders and cases of torture and crimes against humanity
(see Political system).
January
Sam Rainsy is sentenced to prison
Opposition leader Sam Rainsy, who went into exile in Paris, is sentenced in
his absence to fines and two years in prison for incitement against ethnic
groups (Vietnamese) and vandalism. The crimes must have been committed in
connection with popular protests against border markings against Vietnam, a
sensitive issue in Cambodia.
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