Cambodia Economy 2007

Economy - overview:
In 1999, the first full year of peace in 30 years, the government made progress on economic reforms. The US and Cambodia signed a Bilateral Textile Agreement, which gave Cambodia a guaranteed quota of US textile imports and established a bonus for improving working conditions and enforcing Cambodian labor laws and international labor standards in the industry. From 2001 to 2004, the economy grew at an average rate of 6.4%, driven largely by an expansion in the garment sector and tourism. With the January 2005 expiration of a WTO Agreement on Textiles and Clothing, Cambodia-based textile producers were forced to compete directly with lower-priced producing countries such as China and India. Better-than-expected garment sector performance led to more than 13% growth in 2006. Faced with the possibility that its vibrant garment industry, with more than 200,000 jobs, could be in serious danger, the Cambodian government has committed itself to a policy of continued support for high labor standards in an attempt to maintain favor with buyers. The tourism industry continues to grow rapidly, with foreign visitors surpassing 1 million per year beginning in 2005. In 2005, exploitable oil and natural gas deposits were found beneath Cambodia's territorial waters, representing a new revenue stream for the government once commercial extraction begins in the coming years. Mining also is attracting significant investor interest, particularly in the northeastern parts of the country. 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 21 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):
$38.89 billion (2006 est.)

GDP (official exchange rate):
$6.6 billion (2006 est.)

GDP - real growth rate:
10.5% (2006 est.)

GDP - per capita (PPP):
$2,800 (2006 est.)

GDP - composition by sector:
agriculture: 35.1%
industry: 26.2%
services: 38.6% (2006 est.)

Labor force:
7 million (2003 est.)

Labor force - by occupation:
agriculture: 75%
industry: NA%
services: NA% (2004 est.)

Unemployment rate:
2.5% (2000 est.)

Population below poverty line:
35% (2004)

Household income or consumption by percentage share:
lowest 10%: 2.9%
highest 10%: 34.8% (2004)

Distribution of family income - Gini index:
41.7 (2004 est.)

Inflation rate (consumer prices):
4.7% (2006 est.)

Investment (gross fixed):
19.3% of GDP (2006 est.)

Budget:
revenues: $836.2 million
expenditures: $978.7 million (2006 est.)

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

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

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

Electricity - production:
134 million kWh (2005)

Electricity - consumption:
206.6 million kWh (2005)

Electricity - exports:
0 kWh (2005)

Electricity - imports:
82 million kWh (2005)

Oil - production:
0 bbl/day (2004)

Oil - consumption:
3,750 bbl/day (2004 est.)

Oil - exports:
NA bbl/day

Oil - imports:
NA bbl/day

Oil - proved reserves:
0 bbl (1 January 2006)

Natural gas - production:
0 cu m (2005 est.)

Natural gas - consumption:
0 cu m (2005 est.)

Current account balance:
$-337.3 million (2006 est.)

Exports:
$3.693 billion f.o.b. (2006 est.)

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

Exports - partners:
US 53.3%, Hong Kong 15.2%, Germany 6.6%, UK 4.3% (2006)

Imports:
$4.749 billion f.o.b. (2006 est.)

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

Imports - partners:
Hong Kong 18.1%, China 17.5%, Thailand 13.9%, Taiwan 12.7%, Vietnam 9%, Singapore 5.3%, South Korea 4.9%, Japan 4.3% (2006)

Economic aid - recipient:
$537.8 million pledged in grants and concession loans for 2005 by international donors (2005)

Reserves of foreign exchange and gold:
$1.411 billion (2006 est.)

Debt - external:
$3.636 billion (2006 est.)

Market value of publicly traded shares:
$NA

Currency (code):
riel (KHR)

Exchange rates:
riels per US dollar - 4,103 (2006), 4,092.5 (2005), 4,016.25 (2004), 3,973.33 (2003), 3,912.08 (2002)