The overall recent economic performance has been characterized by balanced contributions from agriculture, manufacturing, construction, tourism and services. Despite the global downturn, the Cambodia economy has been in good shape underpinned by a continued increase in investment in agriculture, broad base development of non-agriculture sectors, political stability, active private sector participation, reform efforts, increased official development aids and sustained foreign direct investment. The GDP growth in 2009 remained in the positive, 0.1 percent, while the growth in 2011 is expected to be around 6 percent.
Friday, May 27, 2011
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.
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.
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.
Cambodian Economic Profile: Highlights
Here are some of the highlights of Cambodia’s economy:
$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.)
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 Economy: Growth Efforts
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 21st 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.
Its macroeconomics and modeling capacity distinguishes EIC from other economic research organizations in Cambodia. To date, EIC is the only organization in Cambodia that possesses a Computable General Equilibrium Model, a Provincial Projection Model and a Detailed Demographic Model that can produce forecasts for the Cambodian economy for the short, medium and long term.EIC's macroeconomics and modeling capacity also serves as a framework for sectoral and micro studies to follow, capable of taking into account the array of variables specific to the Cambodian context, such as macroeconomic supply and demand, demography, geographical inequalities, constraints to private sector growth, potential industry diversification and rural development, etc.
EIC's modeling capacity will help identify in detail the trend and the strengths and weaknesses of the Cambodian economy. With the ability to assess the economy's demand and supply, evaluate and rationalize financial needs for economic development, understand constraints and challenges facing the private sector, the institute's modeling activity will provide wide-ranging and essential economic data.