Cambodian Economic Profile: Highlights

Here are some of the highlights of Cambodia’s economy:

• GDP (purchasing power parity):
  
  • $27.92 billion (2009 est.)
    
  • $28.34 billion (2008 est.)
    
  • $26.99 billion (2007 est.)
    

        GDP (official exchange rate): $10.9 billion (2009 est.)
        GDP growth 10.3% (2008 est.)

       GDP - per capita (PPP):

• $1,900 (2009 est.)
  
• $2,000 (2008 est.)
  
• $1,900 (2007 est.)
  

        Unemployment rate:

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

• Population below poverty line: 35% (2004)
  

        Inflation rate (consumer prices):

• -1% (2009 est.)
  
• 25% (2008 est.

Cambodia is a South East Asian country, characterized by a developing economy. With an area of approximately 181,035 square kilometers and a population of over 14 million, Cambodia’s economy is primarily agriculture based. The country borders Thailand, Vietnam and Laos. The densely populated plains are dedicated to rice and are the heartland of Cambodia.
In 2005, oil and natural gas reservoirs were found under Cambodia’s territorial waters and commercial extraction is expected to begin in 2011. Cambodia’s economy can thus expect an impetus that it has long been awaited.

Tourism is the second most contributing industry, besides agriculture, and adds a substantial amount to the Cambodian GDP. The country has a history of regional economic crises, political infighting and civil violence that ended in 1999. There was a dramatic slump in the economy during 1997-98. Tourism and foreign investment faced a major set back at this time. Cambodia’s economy resumed growth at 5.0% in 1999 and 2000, despite severe flooding. The economic grew at 6.3% in 2001 and 5.2% in 2002. Owing to remarkable expansion in the agriculture, garment, tourism and construction sectors, the Cambodian economy saw substantial 10% growth per year from 2004 to 2007.

The global economic recession of 2008 brought down the growth rate to below 7%. The per capita income of Cambodia is increasing swiftly but is lower than that of its various neighboring countries.
With over half of the population aged below 21, the economy suffers from high demographic imbalance. The level of education and productive skills are extremely low especially in the downtrodden countryside. Many areas experience a complete lack of basic infrastructure.

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. GDP contracted slightly in 2009 as a result of the global economic slowdown, but climbed more than 4% in 1010, driven by 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 280,000 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 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. Rubber exports increased about 25% in 2009 due to rising global demand. The tourism industry has continued to grow rapidly, with foreign arrivals exceeding 2 million per year in 2007-08; however, economic troubles abroad dampened growth in 2009. 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 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)

$30.18 billion (2010 est.)
$28.47 billion (2009 est.)
$29.04 billion (2008 est.)
note: data are in 2010 US dollars

GDP (official exchange rate)

$11.63 billion (2010 est.)

GDP - real growth rate

6% (2010 est.)
-2% (2009 est.)
6.7% (2008 est.)

GDP - per capita (PPP)

$2,100 (2010 est.)
$2,000 (2009 est.)
$2,100 (2008 est.)
note: data are in 2010 US dollars

GDP - composition by sector

agriculture: 33.4%
industry: 21.4%
services: 45.2% (2009 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%: 34.2% (2007)

Distribution of family income - Gini index

43 (2007 est.)
40 (2004 est.)

Investment (gross fixed)

20.4% of GDP (2010 est.)

Budget

revenues: $1.472 billion
expenditures: $2.159 billion (2010 est.)

Taxes and other revenues

12.7% of GDP (2010 est.)

Budget surplus (+) or deficit (-)

-5.9% of GDP (2010 est.)

Inflation rate (consumer prices)

4% (2010 est.)
-0.7% (2009 est.)

Central bank discount rate

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

Commercial bank prime lending rate

15.633% (31 December 2010 est.)
15.812% (31 December 2009 est.)

Stock of money

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

Stock of narrow money

$789.9 million (31 December 2010 est.)
$742.6 million (31 December 2009 est.)

Stock of quasi money

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

Stock of broad money

$4.832 billion (31 December 2010 est.)
$3.875 billion (31 December 2009 est.)

Stock of domestic credit

$2.64 billion (31 December 2010 est.)
$1.979 billion (31 December 2009 est.)

Market value of publicly traded shares

$NA

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

5.7% (2010 est.)

Electricity - production

1.273 billion kWh (2007 est.)

Electricity - production by source

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

Electricity - consumption

1.272 billion kWh (2007 est.)

Electricity - exports

0 kWh (2008 est.)

Electricity - imports

167 million kWh (2007 est.)

Oil - production

0 bbl/day (2009 est.)

Oil - consumption

4,000 bbl/day (2009 est.)

Oil - exports

0 bbl/day (2007 est.)

Oil - imports

30,970 bbl/day (2007 est.)

Oil - proved reserves

0 bbl (1 January 2010 est.)

Natural gas - production

0 cu m (2008 est.)

Natural gas - consumption

0 cu m (2008 est.)

Natural gas - exports

0 cu m (2008 est.)

Natural gas - imports

0 cu m (2008 est.)

Natural gas - proved reserves

0 cu m (1 January 2010 est.)

Current Account Balance

-$990.6 million (2010 est.)
-$865.7 million (2009 est.)

Exports

$5.526 billion (2010 est.)
$4.302 billion (2009 est.)

Exports - commodities

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

Exports - partners

Hong Kong 33%, US 31.2%, Singapore 9.7% (2009)

Imports

$6.005 billion (2010 est.)
$5.876 billion (2009 est.)

Imports - commodities

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

Imports - partners

China 22.6%, Vietnam 12.7%, Hong Kong 12.4%, Thailand 11.9%, South Korea 5.4%, Singapore 5.4% (2009)

Reserves of foreign exchange and gold

$3.802 billion (31 December 2010 est.)
$3.288 billion (31 December 2009 est.)

Debt - external

$4.428 billion (31 December 2010 est.)
$4.364 billion (31 December 2009 est.)

Exchange rates

riels (KHR) per US dollar -
4,145 (2010)
4,139 (2009)
4,070.94 (2008)
4,006 (2007)
4,103 (2006)

Economics

Inflation 22% p.a. (1990–2001)

Gross National Product (GNP): $3.34bn Exchange rates against the US$ over the last year: 3835 riels (3835) SCORE CARD World GNP ranking: 127th GNP per capita: $270 Balance of payments: –$105m Inflation: 3.2% Unemployment: 3% Strengths Currently very few, as economy still recovering from long-running conflicts. Considerable future potential. Growth in tourism. Relatively unbureaucratic mentality. Self-sufficiency in rice achieved by 1999. Gems, especially sapphires. Possible offshore oil wealth. Export-oriented garment industry. Weaknesses Tiny tax base makes economic reform hard to implement. Deflation since 2001. Dependence on overseas aid: corruption at most levels of government limits its effectiveness. Disputes over land ownership rights. Profile A switch was made in the 1990s from Vietnamese-inspired central planning to encouragement of the private sector. The Asian financial crisis and internal turmoil affected funding after 1997. The country remains dependent on imports and growth has been slow. A period of deflation began in 2001. EXPORTS IMPORTS ECONOMIC PERFORMANCE INDICATOR From "The Financial Times World Desk Reference" © Dorling Kindersley 2004

Cambodia has identified job creation as its major challenge in the coming decade. It is now trying to establish an economic environment to enable the private sector to create enough jobs to bring some balance in the country’s demography. In order to fulfill its major requirement, the Cambodian government has approached the World Bank, IMF and other bilateral and multilateral donors. By the end of the first decade of the 21^st century, various international aid organizations are helping farmers to adopt crop diversification. However, corruption and instability at the political level discourage donors and foreign investment.

A teaser of a Japanese drama starring actress Kim Tae Hee has been released!
On a popular online community, a post entitled, “Four minutes of Kim Tae Hee’s Japanese drama teaser,” was posted recently, revealing the drama ‘99 Days with a Star‘ that is planned to be broadcast next month in Japan.
The clip features Kim Tae Hee and the male lead Nishijima Hideto making different facial expressions to each other while “Dancing Queen” by ABBA is playing in the background. When Kim Tae Hee is asked what her favorite food is, she answered “Takoyaki,” while Nishijima replied, “Nigiri”.
Kim Tae Hee commented, “I’m waiting anxiously as I get to work with a Japanese actor and director. Though we speak different languages, I hope that we’re able to communicate on set well. Hopefully, it’s a drama that both Korean and Japanese people will find enjoyable.”
Source + Photo: Asia Today via Nate