Economy of Cambodia
The economy of Cambodia (Khmer: សេដ្ឋកិច្ចនៃកម្ពុជា [setʰakəc nəj kampuciə]) currently follows an open market system (market economy) and has seen rapid economic progress in the last decade. Cambodia had a GDP of $28.54 billion in 2022. Per capita income, although rapidly increasing, is low compared with most neighboring countries. Cambodia's two largest industries are textiles and tourism, while agricultural activities remain the main source of income for many Cambodians living in rural areas. The service sector is heavily concentrated on trading activities and catering-related services. Recently, Cambodia has reported that oil and natural gas reserves have been found off-shore.
Phnom Penh, the capital and largest city of Cambodia | |
| Currency | Riel (KHR, ៛) |
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| Calendar year | |
Trade organisations | WTO, ASEAN, AFTA, RCEP, SCO, G77 |
Country group |
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| Statistics | |
| Population | 16,589,023 (2021) |
| GDP |
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| GDP rank |
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GDP growth |
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GDP per capita |
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GDP per capita rank |
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GDP by sector |
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| 2.5% (2020 est.) | |
Population below poverty line |
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| 36.0 medium (2013) | |
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Labour force |
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Labour force by occupation |
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| Unemployment |
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Main industries | tourism, garments, construction, rice milling, fishing, wood and wood products, rubber, cement, gem mining, textiles |
| External | |
| Exports | $20.126 billion (2021 est.) |
Export goods | clothing, precious metal scraps, trunks/cases, gold, leather footwear |
Main export partners |
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| Imports | $32.83 billion (2021 est.) |
Import goods | refined petroleum, clothing, gold, cars, flavored water |
Main import partners |
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FDI stock |
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| −$1.871 billion (2017 est.) | |
Gross external debt | $11.87 billion (31 December 2017 est.) |
| Public finances | |
Government debt | 30.4% of GDP (2017 est.) |
| −1.8% (of GDP) (2017 est.) | |
| Revenues | 3.947 billion (2017 est.) |
| Expenses | 4.354 billion (2017 est.) |
| Economic aid | $934 million pledged in grants and concessional loans for 2011 by international donors |
Credit rating |
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| $12.2 billion (31 December 2017 est.) | |
| History of Cambodia |
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| Early history |
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| Post-Angkor Period |
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| Colonial period |
| Independence and conflict |
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| Peace process |
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| Modern Cambodia |
| By topic |
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| Cambodia portal |
In 1995, with a GDP of $2.92 billion the government transformed the country's economic system from a planned economy to its present market-driven system. Following those changes, growth was estimated at a value of 7% while inflation dropped from 26% in 1994 to only 6% in 1995. Imports increased due to the influx of foreign aid, and exports, particularly from the country's garment industry, also increased. Although there was a constant economic growth, this growth translated to only about 0.71% for the ASEAN economy in 2016, compared with her neighbor Indonesia, which contributed 37.62%.
After four years of improving economic performance, Cambodia's economy slowed in 1997–1998 due to the regional economic crisis, civil unrest, and political infighting. Foreign investments declined during this period. Also, in 1998 the main harvest was hit by drought. But in 1999, the first full year of relative peace in 30 years, progress was made on economic reforms and growth resumed at 4%.
Currently, Cambodia's foreign policy focuses on establishing friendly borders with its neighbors (such as Thailand and Vietnam), as well as integrating itself into regional (ASEAN) and global (WTO) trading systems. Some of the obstacles faced by this emerging economy are the need for a better education system and the lack of a skilled workforce; particularly in the poverty-ridden countryside, which struggles with inadequate basic infrastructure. Nonetheless, Cambodia continues to attract investors because of its low wages, plentiful labor, proximity to Asian raw materials, and favorable tax treatment.